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EFFECTIVE<br />
SUCCESSION<br />
PLANNING<br />
THIRD EDITION
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EFFECTIVE<br />
SUCCESSION<br />
PLANNING<br />
THIRD EDITION<br />
Ensuring Leadership Continuity and<br />
Building Talent from Within<br />
William J. Rothwell<br />
American Management Association<br />
New York • Atlanta • Brussels • Chicago • Mexico City • San Francisco<br />
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organizations. For details, contact Special Sales Department,<br />
AMACOM, a division of American Management Association,<br />
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Tel.: 212-903-8316. Fax: 212-903-8083.<br />
Web site: www.amacombooks.org<br />
This publication is designed to provide accurate and authoritative<br />
information in regard to the subject matter covered. It is sold with<br />
the understanding that the publisher is not engaged in rendering<br />
legal, accounting, or other professional service. If legal advice or<br />
other expert assistance is required, the services of a competent<br />
professional person should be sought.<br />
Library of Congress Cataloging-in-Publication Data<br />
Rothwell, William J.<br />
Effective succession planning : ensuring leadership continuity and<br />
building talent from within / William J. Rothwell.— 3rd ed.<br />
p. cm.<br />
Includes bibliographical references and index.<br />
ISBN 0-8144-0842-7<br />
1. Leadership. 2. Executive succession—United States. 3. Executive<br />
ability. 4. Organizational effectiveness. I. Title.<br />
HD57.7.R689 2005<br />
658.4092—dc22<br />
2004024908<br />
2005 William J. Rothwell.<br />
All rights reserved.<br />
Printed in the United States of America.<br />
This publication may not be reproduced,<br />
stored in a retrieval system,<br />
or transmitted in whole or in part,<br />
in any form or by any means, electronic,<br />
mechanical, photocopying, recording, or otherwise,<br />
without the prior written permission of AMACOM,<br />
a division of American Management Association,<br />
1601 Broadway, New York, NY 10019.<br />
Printing number<br />
10 9 8 7 6 5 4 3 2 1
TO MY WIFE MARCELINA, MY DAUGHTER CANDICE,<br />
MY SON FROILAN, AND MY GRANDSON ADEN
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CONTENTS<br />
List of Exhibits<br />
Preface to the Third Edition<br />
Acknowledgments<br />
xiii<br />
xvii<br />
xxxi<br />
Advance Organizer for This Book 1<br />
PART I<br />
BACKGROUND INFORMATION ABOUT SUCCESSION<br />
PLANNING AND MANAGEMENT 5<br />
CHAPTER 1<br />
What Is Succession Planning and Management? 7<br />
Six Ministudies: Can You Solve These Succession Problems? 7<br />
Defining Succession Planning and Management 10<br />
Distinguishing Succession Planning and Management from<br />
Replacement Planning, Workforce Planning, Talent Management,<br />
and Human Capital Management 16<br />
Making the Business Case for Succession Planning and Management 18<br />
Reasons for a Succession Planning and Management Program 20<br />
Best Practices and Approaches 30<br />
Ensuring Leadership Continuity in Organizations 35<br />
Summary 39<br />
CHAPTER 2<br />
Trends Influencing Succession Planning and Management 41<br />
The Ten Key Trends 42<br />
What Does All This Mean for Succession Planning and Management? 54<br />
Summary 55<br />
vii
viii<br />
C ONTENTS<br />
CHAPTER 3<br />
Moving to a State-of-the-Art Approach 56<br />
Characteristics of Effective Programs 56<br />
The Life Cycle of Succession Planning and Management Programs:<br />
Five Generations 59<br />
Identifying and Solving Problems with Various Approaches 69<br />
Integrating Whole Systems Transformational Change and<br />
Appreciative Inquiry into Succession: What Are These Topics,<br />
and What Added Value Do They Bring? 76<br />
Requirements for a Fifth-Generation Approach 78<br />
Key Steps in a Fifth-Generation Approach 78<br />
Summary 81<br />
CHAPTER 4<br />
Competency Identification and Values Clarification:<br />
Keys to Succession Planning and Management 82<br />
What Are Competencies? 82<br />
How Are Competencies Used in Succession Planning and<br />
Management? 83<br />
Conducting Competency Identification Studies 84<br />
Using Competency Models 85<br />
New Developments in Competency Identification, Modeling, and<br />
Assessment 85<br />
Identifying and Using Generic and Culture-Specific Competency<br />
Development Strategies to Build Bench Strength 86<br />
What Are Values, and What Is Values Clarification? 87<br />
How Are Values Used in Succession Planning and Management? 89<br />
Conducting Values Clarification Studies 90<br />
Using Values Clarification 91<br />
Bringing It All Together: Competencies and Values 91<br />
Summary 91<br />
PART II<br />
LAYING THE FOUNDATION FOR A SUCCESSION<br />
PLANNING AND MANAGEMENT PROGRAM 93<br />
CHAPTER 5<br />
Making the Case for Major Change 95<br />
Assessing Current Problems and Practices 95<br />
Demonstrating the Need 101<br />
Determining Organizational Requirements 108
Contents<br />
ix<br />
Linking Succession Planning and Management Activities to<br />
Organizational and Human Resource Strategy 108<br />
Benchmarking Best Practices and Common Business Practices in<br />
Other Organizations 113<br />
Obtaining and Building Management Commitment 114<br />
The Key Role of the CEO in the Succession Effort 120<br />
Summary 124<br />
CHAPTER 6<br />
Starting a Systematic Program 125<br />
Conducting a Risk Analysis and Building a Commitment to Change 125<br />
Clarifying Program Roles 126<br />
Formulating a Mission Statement 130<br />
Writing Policy and Procedures 136<br />
Identifying Target Groups 138<br />
Clarifying the Roles of the CEO, Senior Managers, and Others 142<br />
Setting Program Priorities 143<br />
Addressing the Legal Framework 145<br />
Establishing Strategies for Rolling Out the Program 147<br />
Summary 155<br />
CHAPTER 7<br />
Refining the Program 156<br />
Preparing a Program Action Plan 156<br />
Communicating the Action Plan 157<br />
Conducting Succession Planning and Management Meetings 160<br />
Training on Succession Planning and Management 164<br />
Counseling Managers About Succession Planning Problems in Their<br />
Areas 172<br />
Summary 174<br />
PART III<br />
ASSESSING THE PRESENT AND THE FUTURE 177<br />
CHAPTER 8<br />
Assessing Present Work Requirements and Individual Job<br />
Performance 179<br />
Identifying Key Positions 180<br />
Three Approaches to Determining Work Requirements in Key<br />
Positions 184<br />
Using Full-Circle, Multirater Assessments 189
x<br />
C ONTENTS<br />
Appraising Performance and Applying Performance Management 192<br />
Creating Talent Pools: Techniques and Approaches 195<br />
Thinking Beyond Talent Pools 200<br />
Summary 202<br />
CHAPTER 9<br />
Assessing Future Work Requirements and Individual<br />
Potential 203<br />
Identifying Key Positions and Talent Requirements for the Future 203<br />
Assessing Individual Potential: The Traditional Approach 210<br />
The Growing Use of Assessment Centers and Portfolios 221<br />
Summary 224<br />
PART IV<br />
CLOSING THE ‘‘DEVELOPMENTAL GAP’’: OPERATING<br />
AND EVALUATING A SUCCESSION PLANNING AND<br />
MANAGEMENT PROGRAM 225<br />
CHAPTER 10<br />
Developing Internal Successors 227<br />
Testing Bench Strength 227<br />
Formulating Internal Promotion Policy 232<br />
Preparing Individual Development Plans 235<br />
Developing Successors Internally 242<br />
The Role of Leadership Development Programs 251<br />
The Role of Coaching 252<br />
The Role of Executive Coaching 253<br />
The Role of Mentoring 253<br />
The Role of Action Learning 255<br />
Summary 256<br />
CHAPTER 11<br />
Assessing Alternatives to Internal Development 257<br />
The Need to Manage for ‘‘Getting the Work Done’’ Rather than<br />
‘‘Managing Succession’’ 257<br />
Innovative Approaches to Tapping the Retiree Base 266<br />
Deciding What to Do 268<br />
Summary 270<br />
CHAPTER 12<br />
Using Technology to Support Succession Planning and<br />
Management Programs 271<br />
Defining Online and High-Tech Methods 271
Contents<br />
xi<br />
Where to Apply Technology Methods 276<br />
How to Evaluate and Use Technology Applications 276<br />
What Specialized Competencies Do Succession Planning and<br />
Management Coordinators Need to Use These Applications? 289<br />
Summary 290<br />
CHAPTER 13<br />
Evaluating Succession Planning and Management<br />
Programs 291<br />
What Is Evaluation? 291<br />
What Should Be Evaluated? 292<br />
How Should Evaluation Be Conducted? 295<br />
Summary 306<br />
CHAPTER 14<br />
The Future of Succession Planning and Management 307<br />
The Fifteen Predictions 308<br />
Summary 329<br />
APPENDIX I:<br />
Frequently Asked Questions (FAQs) About Succession<br />
Planning and Management 331<br />
APPENDIX II:<br />
Case Studies on Succession Planning and Management 337<br />
Case 1: How Business Plans for Succession 337<br />
Case 2: How Government Plans for Succession 341<br />
Case 3: How a Nonprofit Organization Plans for Succession 354<br />
Case 4: Small Business Case 360<br />
Case 5: Family Business Succession 362<br />
Case 6: CEO Succession Planning Case 363<br />
Notes 367<br />
What’s on the CD? 387<br />
Index 391<br />
About the Author 399
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LIST OF EXHIBITS<br />
Exhibit P-1. Age Distribution of the U.S. Population, Selected Years,<br />
1965–2025 xx<br />
Exhibit P-2. U.S. Population by Age, 1965–2025 xxi<br />
Exhibit P-3. The Organization of the Book xxv<br />
Exhibit 1-1. How General Electric Planned the Succession 11<br />
Exhibit 1-2. The Big Mac Succession 14<br />
Exhibit 1-3. Demographic Information About Respondents to a 2004 Survey<br />
on Succession Planning and Management: Industries 21<br />
Exhibit 1-4. Demographic Information About Respondents to a 2004 Survey<br />
on Succession Planning and Management: Size 21<br />
Exhibit 1-5. Demographic Information About Respondents to a 2004 Survey<br />
on Succession Planning and Management: Job Functions of<br />
Respondents 22<br />
Exhibit 1-6. Reasons for Succession Planning and Management Programs 23<br />
Exhibit 1-7. Strategies for Reducing Turnover and Increasing Retention 26<br />
Exhibit 1-8. Workforce Reductions Among Survey Respondents 29<br />
Exhibit 1-9. A Summary of Best Practices on Succession Planning and<br />
Management from Several Research Studies 31<br />
Exhibit 2-1. An Assessment Questionnaire: How Well Is Your Organization<br />
Managing the Consequences of Trends Influencing Succession<br />
Planning and Management? 43<br />
Exhibit 2-2. The Sarbanes-Oxley Act of 2002 49<br />
Exhibit 3-1. Characteristics of Effective Succession Planning and<br />
Management Programs 60<br />
Exhibit 3-2. Assessment Questionnaire for Effective Succession Planning<br />
and Management 64<br />
Exhibit 3-3. A Simple Exercise to Dramatize the Need for Succession<br />
Planning and Management 67<br />
Exhibit 3-4. The Dow Chemical Company’s Formula for Succession 70<br />
Exhibit 3-5. Chief Difficulties with Succession Planning and Management<br />
Programs 72<br />
xiii
xiv<br />
L IST OF E XHIBITS<br />
Exhibit 3-6. The Seven-Pointed Star Model for Systematic Succession<br />
Planning and Management 79<br />
Exhibit 4-1. An Interview Guide to Collect Corporate-Culture-Specific<br />
Competency Development Strategies 88<br />
Exhibit 5-1. Strategies for Handling Resistance to Implementing Succession<br />
Planning and Management 97<br />
Exhibit 5-2. The Importance of Succession Planning and Management 98<br />
Exhibit 5-3. Making Decisions About Successors (in Organizations Without<br />
Systematic Succession Planning and Management) 99<br />
Exhibit 5-4. A Questionnaire for Assessing the Status of Succession Planning<br />
and Management in an Organization 102<br />
Exhibit 5-5. A Worksheet for Demonstrating the Need for Succession<br />
Planning and Management 106<br />
Exhibit 5-6. An Interview Guide for Determining the Requirements for a<br />
Succession Planning and Management Program 109<br />
Exhibit 5-7. An Interview Guide for Benchmarking Succession Planning and<br />
Management Practices 115<br />
Exhibit 5-8. Opinions of Top Managers About Succession Planning and<br />
Management 118<br />
Exhibit 5-9. Opinions of Human Resource Professionals About Succession<br />
Planning and Management 119<br />
Exhibit 5-10. Actions to Build Management Commitment to Succession<br />
Planning and Management 121<br />
Exhibit 5-11. Rating Your CEO for His/Her Role in Succession Planning and<br />
Management 123<br />
Exhibit 6-1. A Model for Conceptualizing Role Theory 127<br />
Exhibit 6-2. Management Roles in Succession Planning and Management:<br />
A Grid 129<br />
Exhibit 6-3. A Worksheet to Formulate a Mission Statement for Succession<br />
Planning and Management 133<br />
Exhibit 6-4. A Sample Succession Planning and Management Policy 137<br />
Exhibit 6-5. Targeted Groups for Succession Planning and Management 139<br />
Exhibit 6-6. An Activity for Identifying Initial Targets for Succession<br />
Planning and Management Activities 140<br />
Exhibit 6-7. An Activity for Establishing Program Priorities in Succession<br />
Planning and Management 146<br />
Exhibit 6-8. U.S. Labor Laws 148<br />
Exhibit 7-1. A Worksheet for Preparing an Action Plan to Establish the<br />
Succession Planning and Management Program 158<br />
Exhibit 7-2. Sample Outlines for In-House Training on Succession Planning<br />
and Management 168<br />
Exhibit 8-1. A Worksheet for Writing a Key Position Description 186
List of Exhibits<br />
xv<br />
Exhibit 8-2. A Worksheet for Considering Key Issues in Full-Circle,<br />
Multirater Assessments 191<br />
Exhibit 8-3. The Relationship Between Performance Management and<br />
Performance Appraisal 194<br />
Exhibit 8-4. Approaches to Conducting Employee Performance Appraisal 197<br />
Exhibit 8-5. A Worksheet for Developing an Employee Performance<br />
Appraisal Linked to a Position Description 199<br />
Exhibit 9-1. A Worksheet for Environmental Scanning 205<br />
Exhibit 9-2. An Activity on Organizational Analysis 206<br />
Exhibit 9-3. An Activity for Preparing Realistic Scenarios to Identify Future<br />
Key Positions 208<br />
Exhibit 9-4. An Activity for Preparing Future-Oriented Key Position<br />
Descriptions 209<br />
Exhibit 9-5. Steps in Conducting Future-Oriented ‘‘Rapid Results<br />
Assessment’’ 211<br />
Exhibit 9-6. How to Classify Individuals by Performance and Potential 214<br />
Exhibit 9-7. A Worksheet for Making Global Assessments 216<br />
Exhibit 9-8. A Worksheet to Identify Success Factors 217<br />
Exhibit 9-9. An Individual Potential Assessment Form 218<br />
Exhibit 10-1. A Sample Replacement Chart Format: Typical Succession<br />
Planning and Management Inventory for the Organization 229<br />
Exhibit 10-2. Succession Planning and Management Inventory by Position 230<br />
Exhibit 10-3. Talent Shows: What Happens? 233<br />
Exhibit 10-4. A Simplified Model of Steps in Preparing Individual<br />
Development Plans (IDPs) 237<br />
Exhibit 10-5. A Worksheet for Preparing Learning Objectives Based on<br />
Individual Development Needs 239<br />
Exhibit 10-6. A Worksheet for Identifying the Resources Necessary to<br />
Support Developmental Experiences 241<br />
Exhibit 10-7. A Sample Individual Development Plan 243<br />
Exhibit 10-8. Methods of Grooming Individuals for Advancement 245<br />
Exhibit 10-9. Key Strategies for Internal Development 247<br />
Exhibit 11-1. Deciding When Replacing a Key Job Incumbent Is Unnecessary:<br />
A Flowchart 259<br />
Exhibit 11-2. A Worksheet for Identifying Alternatives to the Traditional<br />
Approach to Succession Planning and Management 267<br />
Exhibit 11-3. A Tool for Contemplating Ten Ways to Tap the Retiree Base 269<br />
Exhibit 12-1. Continua of Online and High-Tech Approaches 272<br />
Exhibit 12-2. A Starting Point for a Rating Sheet to Assess Vendors for<br />
Succession Planning and Management Software 273
xvi<br />
L IST OF E XHIBITS<br />
Exhibit 12-3. A Hierarchy of Online and High-Tech Applications for<br />
Succession Planning and Management 277<br />
Exhibit 12-4. A Worksheet for Brainstorming When and How to Use Online<br />
and High-Tech Methods 280<br />
Exhibit 13-1. The Hierarchy of Succession Planning and Management<br />
Evaluation 294<br />
Exhibit 13-2. Guidelines for Evaluating the Succession Planning and<br />
Management Program 296<br />
Exhibit 13-3. A Worksheet for Identifying Appropriate Ways to Evaluate<br />
Succession Planning and Management in an Organization 298<br />
Exhibit 13-4. A Sample ‘‘Incident Report’’ for Succession Planning and<br />
Management 299<br />
Exhibit 13-5. Steps for Completing a Program Evaluation of a Succession<br />
Planning and Management Program 301<br />
Exhibit 13-6. A Checksheet for Conducting a Program Evaluation for the<br />
Succession Planning and Management Program 303<br />
Exhibit 14-1. A Worksheet to Structure Your Thinking About Predictions for<br />
Succession Planning and Management in the Future 309<br />
Exhibit 14-2. A Worksheet to Structure Your Thinking About Alternative<br />
Approaches to Meeting Succession Needs 314<br />
Exhibit 14-3. Age Distribution of the U.S. Population in 2025 317<br />
Exhibit 14-4. Age Distribution of the Chinese Population in 2025 318<br />
Exhibit 14-5. Age Distribution of the Population in the United Kingdom<br />
in 2025 318<br />
Exhibit 14-6. Age Distribution of the French Population in 2025 319<br />
Exhibit 14-7. Important Characteristics of Career Planning and Management<br />
Programs 323<br />
Exhibit 14-8. An Assessment Sheet for Integrating Career Planning and<br />
Management Programs with Succession Planning and<br />
Management Programs 325
PREFACE TO THE THIRD EDITION<br />
A colleague told me over the phone the other day that ‘‘there have been no<br />
new developments in succession planning for decades.’’ My response was,<br />
‘‘Au contraire. There have been many changes. Perhaps you are simply not<br />
conversant with how the playing field has changed.’’ I pointed out to him that,<br />
since the second edition of this book was published, there have been many<br />
changes in the world and in succession planning. Allow me a moment to list a<br />
few:<br />
Changes in the World<br />
▲ The Aftereffects of 9/11. When the World Trade Center was destroyed,<br />
172 corporate vice presidents lost their lives. That tragic event reinforced the<br />
message, earlier foreshadowed by the tragic loss of life in Oklahoma City, that<br />
life is fragile and talent at all levels is increasingly at risk in a world where<br />
disaster can strike unexpectedly. In a move that would have been unthinkable<br />
ten years ago, some organizations are examining their bench strength in locations<br />
other than their headquarters in New York City, Washington, or other<br />
cities that might be prone to attack if terrorists should wipe out a whole city<br />
through use of a dirty nuclear weapon or other chemical or biological agent.<br />
Could the organization pick up the pieces and continue functioning without<br />
headquarters? That awful, but necessary, question is on the minds of some<br />
corporate and government leaders today. (In fact, one client of mine has set a<br />
goal of making a European capital the alternative corporate headquarters, with<br />
a view toward having headquarters completely re-established in Europe within<br />
24 hours of the total loss of the New York City headquarters, if disaster should<br />
strike.)<br />
▲ The Aftereffects of Many Corporate Scandals. Ethics, morality, and values<br />
have never been more prominent than they are today. In the wake of<br />
the scandals affecting Enron, Global Crossing, WorldCom, and many other<br />
corporations—and the incredible departure of Arthur Andersen from the corporate<br />
world—many leaders have recognized that ethics, morality, and values<br />
do matter. Corporate boards have gotten more involved in succession planxvii
xviii<br />
P REFACE TO THE THIRD E DITION<br />
ning and management owing, in part, to the requirements of the Sarbanes-<br />
Oxley Act. And corporate leaders, thinking about succession, realize that future<br />
leaders must model the behaviors they want others to exhibit and must avoid<br />
practices that give even the mere appearance of impropriety.<br />
▲ Growing Recognition of the Aging Workforce. Everyone is now talking<br />
about the demographic changes sweeping the working world in the United<br />
States and in the other nations of the G-8. Some organizations have already<br />
felt the effects of talent loss resulting from retirements of experienced workers.<br />
▲ Growing Awareness that Succession Issues Amount to More Than Finding<br />
Replacements. When experienced people leave organizations, they take<br />
with them not only the capacity to do the work but also the accumulated<br />
wisdom they have acquired. That happens at all levels and in all functional<br />
areas. Succession involves more than merely planning for replacements at the<br />
top. It also involves thinking through what to do when the most experienced<br />
people at all levels depart—and take valuable institutional memory with them.<br />
Changes in Succession Planning<br />
▲ The Emergence of ‘‘Talent Management’’ and ‘‘Talent Development.’’<br />
As is true in so many areas of management, these terms may well be in search<br />
of meanings. They have more than one meaning. But, in many cases, talent<br />
management refers to the efforts taken to attract, develop, and retain best-inclass<br />
employees—dubbed high performers (or HiPers) and high potentials (or<br />
HiPos) by some. Talent development may refer to efforts to groom HiPers or<br />
HiPos for the future. Think of it as selective attention paid to the top performing<br />
10 percent of employees—that’s one way it is thought of.<br />
▲ The Emergence of ‘‘Workforce Planning.’’ While some people think that<br />
succession planning is limited to the top of the organization chart—which I<br />
do not believe, by the way—others regard comprehensive planning for the<br />
future staffing needs of the organization as workforce planning. It is also a<br />
popular term for succession planning in government, rivaling the term human<br />
capital management in that venue.<br />
▲ Growing Awareness of Succession Planning. More decision-makers are<br />
becoming aware of the need for succession planning as they scurry to find<br />
replacements for a pending tidal wave of retirements in the wake of years of<br />
downsizing, rightsizing, and smartsizing.<br />
▲ The Recognition that Succession Planning Is Only One of Many Solutions.<br />
When managers hear that they are losing a valuable—and experienced—<br />
worker, their first inclination is to clutch their hearts and say ‘‘Oh, my heavens,<br />
I have only two ways to deal with the problem—promote from inside or hire<br />
from outside. The work is too specialized to hire from outside, and the organization<br />
has such weak bench strength that it is not possible to promote from<br />
within. Therefore, we should get busy and build a succession program.’’ Of
Preface to the Third Edition<br />
xix<br />
course, that is much too limited a view. The goal is to get the work done and<br />
not replace people. There are many ways to get the work done.<br />
▲ Growing Awareness of Technical Succession Planning. While succession<br />
planning is typically associated with preparing people to make vertical<br />
moves on the organization chart, it is also possible to think about individuals<br />
such as engineers, lawyers, research scientists, MIS professionals, and other<br />
professional or technical workers who possess specialized knowledge. When<br />
they leave the organization, they may take critically important, and proprietary,<br />
knowledge with them. Hence, growing awareness exists for the need to do<br />
technical succession planning, which focuses on the horizontal level of the<br />
organization chart and involves broadening and deepening professional<br />
knowledge and preserving it for the organization’s continued use in the future.<br />
▲ Continuing Problems with HR Systems. HR systems are still not up to<br />
snuff. As I consult in this field, I see too little staffing in HR departments,<br />
poorly skilled HR workers, voodoo competency modeling efforts, insufficient<br />
technology to support robust applications like succession, and many other<br />
problems with the HR function itself, including timid HR people who are unwilling<br />
to stand up to the CEO or their operating peers and exert true leadership<br />
about what accountability systems are needed to make sure that managers<br />
do their jobs to groom talent at the same time that they struggle to get today’s<br />
work out the door.<br />
Still, my professional colleague was right in the sense that the world continues<br />
to face the crisis of leadership that was described in the preface to the<br />
first and second editions of this book. Indeed, ‘‘a chronic crisis of governance—that<br />
is, the pervasive incapacity of organizations to cope with the expectations<br />
of their constituents—is now an overwhelming factor worldwide.’’ 1<br />
That statement is as true today as it was when this book was first published in<br />
1994. Evidence can still be found in many settings: Citizens continue to lose<br />
faith in their elected officials to address problems at the national, regional, and<br />
local levels; the religious continue to lose faith in high-profile church leaders<br />
who have been stricken with sensationalized scandals; and consumers continue<br />
to lose faith in business leaders to act responsibly and ethically. 2 Add to<br />
those problems some others: people have lost faith that the media like newspapers<br />
or television stations, now owned by enormous corporations, tell them<br />
the truth—or that reporters have even bothered to check the facts; and patients<br />
have lost faith that doctors, many of whom are now employed by large<br />
profit-making HMOs, are really working to ‘‘do no harm.’’<br />
A crisis of governance is also widespread inside organizations. Employees<br />
wonder what kind of employment they can maintain when a new employment<br />
contract has changed the relationship between workers and their organizations.<br />
Employee loyalty is a relic of the past, 3 a victim of the downsizing craze
xx<br />
P REFACE TO THE THIRD E DITION<br />
so popular in the 1990s and that persists in some organizations to the present<br />
day. Changing demographics makes the identification of successors key to the<br />
future of many organizations when the legacy of the cutbacks in the middlemanagement<br />
ranks, traditional training ground for senior executive positions,<br />
has begun to be felt. If that is hard to believe, consider that 20 percent of the<br />
best-known companies in the United States may lose 40 percent of their senior<br />
executives to retirement at any time. 4 Demographics tell the story: The U.S.<br />
population is aging, and that could mean many retirements soon. (See Exhibits<br />
P-1 and P-2.)<br />
Amid the twofold pressures of pending retirements in senior executive<br />
ranks and the increasing value of intellectual capital and knowledge management,<br />
it is more necessary than ever for organizations to plan for leadership<br />
continuity and employee advancement at all levels. But that is easier said than<br />
done. It is not consistent with longstanding tradition, which favors quick-fix<br />
solutions to succession planning and management (SP&M) issues. Nor is it<br />
consistent with the continuing, current trends favoring slimmed-down<br />
staffing, outsourcing, and the use of contingent workers, which often create a<br />
shallow talent pool from which to choose future leaders.<br />
In previous decades, labor in the United States was plentiful and taken for<br />
Exhibit P-1. Age Distribution of the U.S. Population, Selected Years,<br />
1965–2025<br />
Population (thousands)<br />
25,000<br />
20,000<br />
15,000<br />
10,000<br />
5,000<br />
1965<br />
2015<br />
1995<br />
0<br />
16–19<br />
20–24<br />
25–29<br />
30–34<br />
35–39<br />
40–44<br />
45–49<br />
Age<br />
50–54<br />
55–59<br />
60–64<br />
65–69<br />
70–74<br />
75–79<br />
80+<br />
Source: Stacy Poulos and Demetra S. Nightengale, ‘‘The Aging Baby Boom: Implications for Employment and Training Programs.’’<br />
Presented at http://www.urban.org/aging/abb/agingbaby.html. This report was prepared by the U.S. Department of Labor under<br />
Contract No. F-5532-5-00-80-30.
Preface to the Third Edition<br />
xxi<br />
Exhibit P-2. U.S. Population by Age, 1965–2025<br />
100000<br />
90000<br />
80000<br />
70000<br />
16–24 yr olds<br />
25–34 yr olds<br />
35–44 yr olds<br />
45–54 yr olds<br />
55 & older<br />
60000<br />
50000<br />
40000<br />
30000<br />
20000<br />
10000<br />
1965 1975<br />
1985<br />
1995<br />
2005<br />
2015<br />
2025<br />
Year<br />
Source: Stacy Poulos and Demetra S. Nightengale, ‘‘The Aging Baby Boom: Implications for Employment and Training Programs.’’<br />
Presented at http://www.urban.org/aging/abb/agingbaby.html. This report was prepared by the U.S. Department of Labor under<br />
Contract No. F-5532-5-00-80-30.<br />
granted. Managers had the leisure to groom employees for advancement over<br />
long time spans and to overstaff as insurance against turnover in key positions.<br />
That was as true for management as for nonmanagement employees. Most<br />
jobs did not require extensive prequalification. Seniority (sometimes called<br />
job tenure), as measured by time with an organization or in an industry, was<br />
sufficient to ensure advancement.<br />
Succession planning and management activities properly focused on leaders<br />
at the peak of tall organizational hierarchies because organizations were<br />
controlled from the top down and were thus heavily dependent on the knowledge,<br />
skills, and attitudes of top management leaders. But times have changed.<br />
Few organizations have the luxury to overstaff in the face of fierce competition<br />
from low-cost labor abroad and economic restructuring efforts. That is particu-
xxii<br />
P REFACE TO THE THIRD E DITION<br />
larly true in high-technology companies where several months’ experience<br />
may be the equivalent of one year’s work in a traditional organization.<br />
At the same time, products, markets, and management activities have<br />
grown more complex. Many jobs now require extensive prequalification, both<br />
inside and outside organizations. A track record of demonstrated and successful<br />
work performance, more than mere time in position, and leadership competency<br />
have become key considerations as fewer employees compete for<br />
diminishing advancement opportunities. As employee empowerment has<br />
broadened the ranks of decision-makers, leadership influence can be exerted<br />
at all hierarchical levels rather than limited to those few granted authority by<br />
virtue of their lofty titles and management positions.<br />
For these reasons, organizations must take proactive steps to plan for future<br />
talent needs at all levels and implement programs designed to ensure that<br />
the right people are available for the right jobs in the right places and at the<br />
right times to meet organizational requirements. Much is at stake in this process:<br />
‘‘The continuity of the organization over time requires a succession of<br />
persons to fill key positions.’’ 5 There are important social implications as well.<br />
As management guru Peter Drucker explained in words as true today as when<br />
they were written 6 :<br />
The question of tomorrow’s management is,<br />
above all, a concern of our society. Let me put<br />
it bluntly—we have reached a point where we<br />
simply will not be able to tolerate as a country,<br />
as a society, as a government, the danger<br />
that any one of our major companies will<br />
decline or collapse because it has not made<br />
adequate provisions for management succession.<br />
[emphasis added]<br />
Research adds weight to the argument favoring SP&M. First, it has been<br />
shown that firms in which the CEO has a specific successor in mind are more<br />
profitable than those in which no specific successor has been identified. A<br />
possible reason is that selecting a successor ‘‘could be viewed as a favorable<br />
general signal about the presence and development of high-quality top management.’’<br />
7 In other words, superior-performing CEOs make SP&M and leadership<br />
continuity top priorities. Succession planning and management has<br />
even been credited with driving a plant turnaround by linking the organization’s<br />
continuous improvement philosophy to individual development. 8<br />
But ensuring leadership continuity can be a daunting undertaking. The<br />
rules, procedures, and techniques used in the past appear to be growing increasingly<br />
outmoded and inappropriate. It is time to revisit, rethink, and even<br />
reengineer SP&M. That is especially true because, in the words of one observer<br />
of the contemporary management scene, ‘‘below many a corporation’s top
Preface to the Third Edition<br />
xxiii<br />
two or three positions, succession planning [for talent] is often an informal,<br />
haphazard exercise where longevity, luck, and being in the proverbial right<br />
place at the right time determines lines of succession.’’ 9 A haphazard approach<br />
to SP&M bodes ill for organizations in which leadership talent is diffused—and<br />
correspondingly important—at all hierarchical levels and yet the need exists<br />
to scramble organizational resources quickly to take advantage of business<br />
opportunities or deal with crises.<br />
The Purpose of This Book<br />
Succession planning and management and leadership development figure<br />
prominently on the agenda of many top managers. Yet, despite senior management<br />
interest, the task often falls to human resource management (HRM) and<br />
workplace learning and performance (WLP) professionals to spearhead and<br />
coordinate efforts to establish and operate planned succession programs and<br />
avert succession crises. In that way, they fill an important, proactive role demanded<br />
of them by top managers, and they ensure that SP&M issues are not<br />
lost in the shuffle of fighting daily fires.<br />
But SP&M is rarely, if ever, treated in most undergraduate or graduate<br />
college degree programs—even in those specifically tailored to preparing HRM<br />
and WLP professionals. For this reason, HRM and WLP professionals often<br />
need assistance when they coordinate, establish, operate, or evaluate SP&M<br />
programs. This book is intended to provide that help. It offers practical,<br />
how-to-do-it advice on SP&M. The book’s scope is deliberately broad. It encompasses<br />
more than management succession planning, which is the most<br />
frequently discussed topic by writers and consultants in the field. Stated succinctly,<br />
the purpose of this book is to reassess SP&M and offer a current, fresh<br />
but practical approach to ensuring leadership continuity in key positions and<br />
building leadership talent from within.<br />
Succession planning and management should support strategic planning<br />
and strategic thinking and should provide an essential starting point for management<br />
and employee development programs. Without it, organizations will<br />
have difficulty maintaining leadership continuity—or identifying appropriate<br />
leaders when a change in business strategy is necessary. While many large<br />
blue-chip corporations operate best-practice SP&M programs, small and medium-sized<br />
businesses also need them. In fact, inadequate succession plans<br />
are a common cause of small business failure as founding entrepreneurs fade<br />
from the scene, leaving no one to continue their legacy, 10 and as tax laws exert<br />
an impact on the legacy of those founders as they pass away. Additionally,<br />
nonprofit enterprises and government agencies need to give thought to planning<br />
for future talent.<br />
Whatever an organization’s size or your job responsibilities, then, this<br />
book should provide useful information on establishing, managing, operating,<br />
and evaluating SP&M programs.
xxiv<br />
P REFACE TO THE THIRD E DITION<br />
Sources of Information<br />
As I began writing this book I decided to explore state-of-the-art succession<br />
planning and management practices. I consulted several major sources of information:<br />
1. A Tailor-Made Survey. In 2004 I surveyed over 500 HRM professionals<br />
about SP&M practices in their organizations. Selected survey results,<br />
which were compiled in June 2004, are published in this book for the<br />
first time. This survey was an update of earlier surveys conducted for<br />
the first edition (1994) and second edition (2000) of this book. While<br />
the response rate to this survey was disappointing, the results do provide<br />
interesting information.<br />
2. Phone Surveys and Informal Benchmarking. I spoke by phone and in<br />
person with vendors of specialized succession planning software and<br />
discussed SP&M with workplace learning and performance professionals<br />
in major corporations.<br />
3. Other Surveys. I researched other surveys that have been conducted on<br />
SP&M in recent years and, giving proper credit when due, I summarize<br />
key findings of those surveys at appropriate points in the book.<br />
4. Web Searches. I examined what resources could be found on the World<br />
Wide Web relating to important topics in this book.<br />
5. A Literature Search. I conducted an exhaustive literature review on<br />
SP&M—with special emphasis on what has been written on the subject<br />
since the last edition of this book. I also looked for case-study descriptions<br />
of what real organizations have been doing.<br />
6. Firsthand In-House Work Experience. Before entering the academic<br />
world, I was responsible for a comprehensive management development<br />
(MD) program in a major corporation. As part of that role I coordinated<br />
management SP&M. My experiences are reflected in this book.<br />
7. Extensive External Consulting and Public Speaking. Since entering academe,<br />
I have also done extensive consulting and public speaking on the<br />
topic of SP&M. I spoke about succession planning to sixty-four CEOs of<br />
the largest corporations in Singapore; conducted training on succession<br />
in Asia and in Europe; keynoted several conferences on succession<br />
and spoke on the topic at many conferences; and provided guidance<br />
for a major research study of best practices on the topic in large corporations.<br />
Most recently, I have focused attention on best practices in government<br />
succession at all levels—local, state, federal, and international.<br />
The aim of these sources is to ensure that this book will provide a comprehensive<br />
and up-to-date treatment of typical and best-in-class SP&M practices<br />
in organizations of various sizes and types operating in different industries.
Preface to the Third Edition<br />
xxv<br />
The Scheme of This Book<br />
Effective Succession Planning: Ensuring Leadership Continuity and Building<br />
Talent from Within, Third Edition, is written for those wishing to establish,<br />
revitalize, or review an SP&M program within their organizations. It is geared<br />
to meet the needs of HRM and WLP executives, managers, and professionals.<br />
It also contains useful information for chief executive officers, chief operating<br />
officers, general managers, university faculty members who do consulting,<br />
management development specialists who are looking for a detailed treatment<br />
of the subject as a foundation for their own efforts, SP&M program coordinators,<br />
and others bearing major responsibilities for developing management,<br />
professional, technical, sales, or other employees.<br />
The book is organized in four parts. (See Exhibit P-3.) Part I sets the stage.<br />
Chapter 1 opens with dramatic vignettes illustrating typical—and a few rivet-<br />
Exhibit P-3. The Organization of the Book<br />
Part I<br />
Background Information About<br />
Succession Planning and Management<br />
Part IV<br />
Closing the “Developmental Gap”:<br />
Operating and Evaluating a Succession<br />
Planning and Management Program<br />
Part II<br />
Laying the Foundation for a<br />
Succession Planning and<br />
Management Program<br />
Part III<br />
Assessing the Present and the Future
xxvi<br />
P REFACE TO THE THIRD E DITION<br />
ingly atypical—problems in SP&M. The chapter also defines succession planning<br />
and management. It also distinguishes it from replacement planning,<br />
workforce planning, talent management, and human capital management.<br />
Then the chapter goes on to emphasize its importance, explain why organizations<br />
sponsor such programs, and describe different approaches to succession<br />
planning and management.<br />
Chapter 2 describes key trends influencing succession planning and management.<br />
Those trends are: (1) the need for speed; (2) a seller’s market for<br />
skills; (3) reduced loyalty among employers and workers; (4) the importance<br />
of intellectual capital and knowledge management; (5) the key importance of<br />
values and competencies; (6) more software available to support succession;<br />
(7) the growing activism of boards of directors; (8) growing awareness of similarities<br />
and differences in succession issues globally; (9) growing awareness of<br />
similarities and differences of succession programs in special venues: government,<br />
nonprofit, education, small business, and family business; and (10)<br />
managing a special issue: CEO succession. The chapter clarifies what these<br />
trends mean for SP&M efforts.<br />
Chapter 3 summarizes the characteristics of effective SP&M programs, describes<br />
the life cycle of SP&M programs, identifies and solves common problems<br />
with various approaches to SP&M, describes the requirements and key<br />
steps in a fifth-generation approach to SP&M, and explains how new approaches<br />
to organizational change may be adapted for use with SP&M.<br />
Chapter 4 defines competencies, explains how they are used in SP&M,<br />
summarizes how to conduct competency studies for SP&M and use the results,<br />
explains how organizational leaders can ‘‘build’’ competencies using development<br />
strategies, defines values, and explains how values and values clarification<br />
can guide SP&M efforts.<br />
Part II consists of Chapters 5 through 7. It lays the foundation for an effective<br />
SP&M program. Chapter 5 describes how to make the case for change,<br />
often a necessary first step before any change effort can be successful. The<br />
chapter reviews such important steps in this process as assessing current<br />
SP&M practices, demonstrating business need, determining program requirements,<br />
linking SP&M to strategic planning and human resource planning,<br />
benchmarking SP&M practices in other organizations, and securing management<br />
commitment. It also emphasizes the critical importance of the CEO’s<br />
role in SP&M in businesses.<br />
Building on the previous chapter, Chapter 6 explains how to clarify roles<br />
in an SP&M program; formulate the program’s mission, policy, and procedure<br />
statements; identify target groups; and set program priorities. It also addresses<br />
the legal framework in SP&M and provides advice about strategies for rolling<br />
out an SP&M program.<br />
Chapter 7 rounds out Part II. It offers advice on preparing a program action<br />
plan, communicating the action plan, conducting SP&M meetings, designing<br />
and delivering training to support SP&M, and counseling managers about<br />
SP&M problems uniquely affecting them and their areas of responsibility.
Preface to the Third Edition<br />
xxvii<br />
Part III comprises Chapters 8 and 9. It focuses on assessing present work<br />
requirements in key positions, present individual performance, future work<br />
requirements, and future individual potential. Crucial to an effective SP&M<br />
program, these activities are the basis for subsequent individual development<br />
planning.<br />
Chapter 8 examines the present situation. It addresses the following questions:<br />
▲ How are key positions identified?<br />
▲ What three approaches can be used to determining work requirements<br />
in key positions?<br />
▲ How can full-circle, multirater assessment be used in SP&M?<br />
▲ How is performance appraised?<br />
▲ What techniques and approaches can be used in creating talent pools?<br />
Chapter 9 examines the future. Related to Chapter 8, it focuses on these<br />
questions:<br />
▲ What key positions are likely to emerge in the future?<br />
▲ What will be the work requirements in those positions?<br />
▲ What is individual potential assessment, and how can it be carried out?<br />
Part IV consists of Chapters 10 through 14. Chapters in this part focus on<br />
closing the developmental gap by operating and evaluating an SP&M program.<br />
Chapter 10 offers advice for testing the organization’s overall bench strength,<br />
explains why an internal promotion policy is important, defines the term individual<br />
development plan (IDP), describes how to prepare and use an IDP<br />
to guide individual development, and reviews important methods to support<br />
internal development.<br />
Chapter 11 moves beyond the traditional approach to SP&M. It offers alternatives<br />
to internal development as the means by which to meet replacement<br />
needs. The basic idea of the chapter is that underlying a replacement need is<br />
a work need that must be satisfied. There are, of course, other ways to meet<br />
work needs than by replacing a key position incumbent. The chapter provides<br />
a decision model to distinguish between situations when replacing a key position<br />
incumbent is—and is not—warranted.<br />
Chapter 12 examines how to apply online and high-tech approaches to<br />
SP&M programs. The chapter addresses four major questions: (1) How are<br />
online and high-tech methods defined? (2) In what areas of SP&M can online<br />
and high-tech methods be applied? (3) How are online and high-tech applications<br />
used? and (4) What specialized competencies are required by succession<br />
planning coordinators to use these applications?<br />
Chapter 13 is about evaluation, and it examines possible answers to three
xxviii<br />
P REFACE TO THE THIRD E DITION<br />
simple questions: (1) What is evaluation? (2) What should be evaluated in<br />
SP&M? and (3) How should an SP&M program be evaluated?<br />
Chapter 14 concludes the book. It offers eight predictions about SP&M.<br />
More specifically, I end the book by predicting that SP&M will: (1) prompt<br />
efforts by decision-makers to find flexible strategies to address future organizational<br />
talent needs; (2) lead to integrated retention policies and procedures<br />
that are intended to identify high-potential talent earlier, retain that talent,<br />
and preserve older high-potential workers; (3) have a global impact; (4) be<br />
influenced increasingly by real-time technological innovations; (5) become an<br />
issue in government agencies, academic institutions, and nonprofit enterprises<br />
in a way never before seen; (6) lead to increasing organizational openness<br />
about possible successors; (7) increasingly be integrated with career development<br />
issues; and (8) be heavily influenced in the future by concerns about<br />
work/family balance and spirituality.<br />
The book ends with two appendices. Appendix I addresses frequently<br />
asked questions (FAQs) about succession planning and management. Appendix<br />
II provides a range of case studies about succession planning and management<br />
that describe how it is applied in various settings.<br />
One last thing. You may be asking yourself: ‘‘How is the third edition of<br />
this classic book different from the second edition?’’ While I did not add or<br />
drop chapters, I did make many changes to this book. Allow me to list just a<br />
few:<br />
▲ The book opens with an Advance Organizer, a new feature that allows<br />
you to assess the need for an effective SP&M program in your organization<br />
and to go immediately to chapters that address special needs.<br />
▲ The survey research cited in this book is new, conducted in year 2004.<br />
▲ The literature cited in the book has been expanded and updated.<br />
▲ New sections in one chapter have been added on specialized topics<br />
within succession, including: (1) CEO succession; (2) succession in government;<br />
(3) succession in small business; (4) succession in family business;<br />
and (5) succession in international settings.<br />
▲ A new section has been added on using assessment centers and work<br />
portfolios in potential assessment.<br />
▲ A new section has been added on the use of psychological assessments<br />
in succession, a topic of growing interest.<br />
▲ The section on competency identification, modeling, and assessment<br />
has been updated.<br />
▲ A new section has been added on planning developmental strategies.<br />
▲ A new section has been added on the CEO’s role in succession.<br />
▲ The book closes with a selection of frequently asked questions (FAQs)<br />
about succession planning and management, which is new.
Preface to the Third Edition<br />
xxix<br />
▲ A CD-ROM has been added to the book—a major addition in its own<br />
right—and it contains reproducible copies of all assessment instruments<br />
and worksheets that appear in the book as well as three separate<br />
briefings/workshops: one on mentoring, one as an executive briefing on<br />
succession, and one on the manager’s role in succession. (The table of<br />
contents for the CD is found at the back of this book.)<br />
All these changes reflect the many changes that have occurred in the succession<br />
planning and management field within the last few years and since the<br />
last edition was published.<br />
William J. Rothwell<br />
University Park, Pennsylvania<br />
January 2005
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ACKNOWLEDGMENTS<br />
Writing a book resembles taking a long journey. The researching, drafting, and<br />
repeated revising requires more time, effort, patience, and self-discipline than<br />
most authors care to admit or have the dedication to pursue. Yet no book is<br />
written in isolation. Completing such a journey requires any author to seek<br />
help from many people, who provide advice—and directions—along the way.<br />
This is my opportunity to thank those who have helped me. I would therefore<br />
like to extend my sincere appreciation to my graduate research assistants,<br />
Ms. Wang Wei and Ms. Yeonsoo Kim, for their excellent and able assistance in<br />
helping me to send out and analyze the survey results, and for helping me to<br />
track down and secure necessary copyright permissions.<br />
I would also like to thank Adrienne Hickey and other staff members at<br />
AMACOM, who offered numerous useful ideas on the project while demonstrating<br />
enormous patience with me and my busy schedule in consulting and<br />
presenting around the world.<br />
xxxi
This page intentionally left blank
ADVANCE ORGANIZER<br />
FOR THIS BOOK<br />
Complete the following assessment before you read this book. Use it to help<br />
you assess the need for an effective succession planning and management<br />
(SP&M) program in your organization. You may also use it to refer directly to<br />
topics in the book that are of special importance to you now.<br />
Directions: Read each item below. Circle Y (yes), N/A (not applicable), or<br />
N (no) in the left column next to each item. Spend about 15 minutes on this.<br />
Think of succession planning and management in your organization as you<br />
believe it is—not as you think it should be. When you finish, score and interpret<br />
the results using the instructions appearing at the end of this Advance<br />
Organizer. Then be prepared to share your responses with others in your organization<br />
as a starting point for planning. If you would like to learn more about<br />
one item below, refer to the number in the right column to find the chapter in<br />
this book in which the subject is discussed.<br />
Circle your response in the left-hand column for each response below.<br />
Has your organization:<br />
Chapter<br />
Y N/A N 1. Clearly defined the need for succession 1<br />
planning and management (SP&M)?<br />
Y N/A N 2. Distinguished succession planning and 1<br />
management from replacement, workforce<br />
planning, talent management, and human<br />
capital management?<br />
Y N/A N 3. Made the business case by showing the im- 1<br />
portance of succession planning and management?<br />
Y N/A N 4. Clarified the reasons (goals) for the succes- 1<br />
sion planning and management program?<br />
Y N/A N 5. Investigated best practices and approaches 1<br />
to succession planning and management?<br />
Y N/A N 6. Considered the drivers of change and the 2<br />
trends that may influence succession planning<br />
and management?<br />
1
2 E FFECTIVE S UCCESSION P LANNING<br />
Y N/A N 7. Clarified how trends, as they unfold, may 2<br />
influence succession planning and management<br />
in your organization?<br />
Y N/A N 8. Investigated the characteristics of effective 3<br />
succession planning and management programs?<br />
Y N/A N 9. Thought about how to roll out a succes- 3<br />
sion planning and management program?<br />
Y N/A N 10. Set out to identify, and try to avoid, com- 3<br />
mon problems with succession planning<br />
and management?<br />
Y N/A N 11. Considered integrating whole-systems 3<br />
transformational change into the succession<br />
planning and management program?<br />
Y N/A N 12. Considered integrating appreciative in- 3<br />
quiry into the succession planning and<br />
management program?<br />
Y N/A N 13. Planned for what might be required to es- 3<br />
tablish a state-of-the-art approach to the<br />
succession planning and management program?<br />
Y N/A N 14. Defined competencies as they might be 4<br />
used in your organization?<br />
Y N/A N 15. Considered how competency models 4<br />
might be used for your succession planning<br />
and management program?<br />
Y N/A N 16. Explored new developments in compe- 4<br />
tency identification, modeling, and assessment<br />
for the succession planning and<br />
management program?<br />
Y N/A N 17. Identified competency development strat- 4<br />
egies to build bench strength?<br />
Y N/A N 18. Specifically considered how values might 4<br />
impact the succession planning and management<br />
program?<br />
Y N/A N 19. Determined organizational requirements 5<br />
for the succession planning and management<br />
program?<br />
Y N/A N 20. Linked succession planning and manage- 5<br />
ment activities to organizational and<br />
human resource strategy?<br />
Y N/A N 21. Benchmarked best practices and common 5<br />
business practices in succession planning<br />
and management practices in other organizations?
Advance Organizer for This Book<br />
3<br />
Y N/A N 22. Obtained and built management commit- 5<br />
ment to systematic succession planning<br />
and management?<br />
Y N/A N 23. Clarified the key role to be played by the 5<br />
CEO in the succession effort?<br />
Y N/A N 24. Conducted a risk analysis? 6<br />
Y N/A N 25. Formulated a mission statement for the 6<br />
succession effort?<br />
Y N/A N 26. Written policy and procedures to guide the 6<br />
succession effort?<br />
Y N/A N 27. Identified target groups for the succession 6<br />
effort?<br />
Y N/A N 28. Set program priorities? 6<br />
Y N/A N 29. Addressed the legal framework affecting 6<br />
the the succession planning and management<br />
program?<br />
Y N/A N 30. Established strategies for rolling out the 6<br />
program?<br />
Y N/A N 31. Prepared a program action plan? 7<br />
Y N/A N 32. Communicated the action plan? 7<br />
Y N/A N 33. Conducted succession planning and man- 7<br />
agement meetings?<br />
Y N/A N 34. Trained on succession planning and man- 7<br />
agement?<br />
Y N/A N 35. Counseled managers about succession 7<br />
planning problems in their areas?<br />
Y N/A N 36. Identified key positions? 8<br />
Y N/A N 37. Appraised performance and applied per- 8<br />
formance management?<br />
Y N/A N 38. Considered creating talent pools? 8<br />
Y N/A N 39. Thought of possibilities beyond talent 8<br />
pools?<br />
Y N/A N 40. Identified key positions for the future? 9<br />
Y N/A N 41. Assessed individual potential for promot- 9<br />
ability on some systematic basis?<br />
Y N/A N 42. Considered using assessment centers? 9<br />
Y N/A N 43. Considered using work portfolios to assess 9<br />
individual potential?<br />
Y N/A N 44. Tested bench strength? 10<br />
Y N/A N 45. Formulated internal promotion policy? 10<br />
Y N/A N 46. Prepared individual development plans? 10<br />
Y N/A N 47. Developed successors internally? 10<br />
Y N/A N 48. Considered using leadership development 10<br />
programs in succession planning?
4 E FFECTIVE S UCCESSION P LANNING<br />
Y N/A N 49. Considered using executive coaching in 10<br />
succession planning?<br />
Y N/A N 50. Considered using mentoring in succession 10<br />
planning?<br />
Y N/A N 51. Considered using action learning in suc- 10<br />
cession planning?<br />
Y N/A N 52. Explored alternative ways to get the work 11<br />
done beyond succession?<br />
Y N/A N 53. Explored innovative approaches to tap- 11<br />
ping the retiree base?<br />
Y N/A N 54. Investigated how online and high-tech 12<br />
methods be applied?<br />
Y N/A N 55. Decided what should be evaluated? 13<br />
Y N/A N 56. Decided how the program can be evalu- 13<br />
ated?<br />
Y N/A N 57. Considered how changing conditions may 14<br />
affect the succession planning and management<br />
program?<br />
Scoring and Interpreting the Advance Organizer<br />
Give your organization one point for each Y and zero for each N or N/A. Total<br />
the number of Ts, and place the sum in the line next to the word TOTAL.<br />
Then interpret your score as follows:<br />
50 or more Your organization is apparently using effective succession planning<br />
and management practices.<br />
40 to 49 Improvements could be made to succession planning and management<br />
practices. On the whole, however, the organization is<br />
proceeding on the right track.<br />
30 to 39 Succession planning and management practices in your organization<br />
do not appear to be as effective as they should be. Significant<br />
improvements should be made.<br />
28 or less Succession planning and management practices are ineffective<br />
in your organization. They are probably a source of costly mistakes,<br />
productivity losses, and unnecessary employee turnover.<br />
Take immediate corrective action.
PART<br />
I<br />
BACKGROUND INFORMATION ABOUT<br />
SUCCESSION PLANNING AND MANAGEMENT<br />
Part I<br />
Background Information About<br />
Succession Planning and Management<br />
Part IV<br />
Closing the “Developmental Gap”:<br />
Operating and Evaluating a Succession<br />
Planning and Management Program<br />
Part II<br />
Laying the Foundation for a<br />
Succession Planning and<br />
Management Program<br />
Part III<br />
Assessing the Present and the Future<br />
•Defines SP&M.<br />
•Distinguishes SP&M from replacement planning.<br />
•Describes the importance of SP&M.<br />
•Lists reasons for an SP&M program.<br />
•Reviews approaches to SP&M.<br />
•Reviews key trends influencing SP&M and explains their implications.<br />
•Lists key characteristics of effective SP&M programs.<br />
•Describes the life cycle of SP&M programs.<br />
•Explains how to identify and solve problems with various approaches to SP&M.<br />
•Lists the requirements and key steps for a fifth-generation approach to SP&M.<br />
•Defines competencies and explains how they are used in SP&M.<br />
•Describes how to conduct and use competency identification studies for SP&M.
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C H A P T E R 1<br />
WHAT IS SUCCESSION PLANNING<br />
AND MANAGEMENT?<br />
Six Ministudies: Can You Solve These Succession Problems?<br />
How is your organization handling succession planning and management<br />
(SP&M)? Read the following vignettes and, on a separate sheet, describe how<br />
your organization would solve the problem presented in each. If you can offer<br />
an effective solution to all the problems in the vignettes, then your organization<br />
may already have an effective SP&M program in place; if not, your organization<br />
may have an urgent need to devote more attention to the problem of<br />
succession.<br />
Vignette 1<br />
An airplane crashes in the desert, killing all on board. Among the passengers<br />
are top managers of Acme Engineering, a successful consulting firm. When the<br />
vice president of human resources at Acme is summoned to the phone to<br />
receive the news, she gasps, turns pale, looks blankly at her secretary, and<br />
breathlessly voices the first question that enters her mind: ‘‘Now who’s in<br />
charge?’’<br />
Vignette 2<br />
On the way to a business meeting in Bogota, Colombia, the CEO of Normal<br />
Fixtures (maker of ceramic bathroom fixtures) is seized and is being held for<br />
ransom by freedom fighters. They demand 1 million U.S. dollars in exchange<br />
for his life, or they will kill him within 72 hours. Members of the corporate<br />
board are beside themselves with concern.<br />
Vignette 3<br />
Georgina Myers, supervisor of a key assembly line, has just called in sick after<br />
two years of perfect attendance. She personally handles all purchasing and<br />
7
8 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
production scheduling in the small plant, as well as overseeing the assembly<br />
line. The production manager, Mary Rawlings, does not know how the plant<br />
will function in the absence of this key employee, who carries in her head<br />
essential, and proprietary, knowledge of production operations. She is sure<br />
that production will be lost today because Georgina has no trained backup.<br />
Vignette 4<br />
Marietta Diaz was not promoted to supervisor. She is convinced that she is a<br />
victim of racial and sexual discrimination. Her manager, Wilson Smith, assures<br />
her that that is not the case. As he explains to her, ‘‘You just don’t have the<br />
skills and experience to do the work. Gordon Hague, who was promoted,<br />
already possesses those skills. The decision was based strictly on individual<br />
merit and supervisory job requirements.’’ But Marietta remains troubled. How,<br />
she wonders, could Gordon have acquired those skills in his previous nonsupervisory<br />
job?<br />
Vignette 5<br />
Morton Wile is about to retire as CEO of Multiplex Systems. For several years<br />
he has been grooming L. Carson Adams as his successor. Adams has held the<br />
posts of executive vice president and chief operating officer, and his performance<br />
has been exemplary in those positions. Wile has long been convinced<br />
that Adams will make an excellent CEO. But, as his retirement date approaches,<br />
Wile has recently been hearing questions about his choice. Several<br />
division vice presidents and members of the board of directors have asked him<br />
privately how wise it is to allow Adams to take over, since (it is whispered) he<br />
has long had a high-profile extramarital affair with his secretary and is rumored<br />
to be an alcoholic. How, they wonder, can he be chosen to assume the top<br />
leadership position when he carries such personal baggage? Wile is loathe to<br />
talk to Adams about these matters because he does not want to police anyone’s<br />
personal life. But he is sufficiently troubled to think about initiating an executive<br />
search for a CEO candidate from outside the company.<br />
Vignette 6<br />
Linda Childress is general manager of a large consumer products plant in the<br />
Midwest. She has helped her plant weather many storms. The first was a corporate-sponsored<br />
voluntary early retirement program, which began eight years<br />
ago. In that program Linda lost her most experienced workers, and among its<br />
effects in the plant were costly work redistribution, retraining, retooling, and
What Is Succession Planning and Management?<br />
9<br />
automation. The second storm was a forced layoff that occurred five years ago.<br />
It was driven by fierce foreign competition in consumer products manufacture.<br />
The layoff cost Linda fully one-fourth of her most recently hired workers<br />
and many middle managers, professionals, and technical employees. It also<br />
led to a net loss of protected labor groups in the plant’s workforce to a level<br />
well below what had taken the company ten years of ambitious efforts to<br />
achieve. Other consequences were increasingly aggressive union action in the<br />
plant; isolated incidents of violence against management personnel by disgruntled<br />
workers; growing evidence of theft, pilferage, and employee sabotage;<br />
and skyrocketing absenteeism and turnover rates.<br />
The third storm swept the plant on the heels of the layoff. Just three years<br />
ago corporate headquarters announced a company-wide Business Process Reengineering<br />
program. Its aims were to improve product quality and customer<br />
service, build worker involvement and empowerment, reduce scrap rates, and<br />
meet competition from abroad. While the goals were laudable, the program<br />
was greeted with skepticism because it was introduced so soon after the layoff.<br />
Many employees—and supervisors—voiced the opinion that ‘‘corporate headquarters<br />
is using Business Process Reengineering to clean up the mess they<br />
created by chopping heads first and asking questions about work reallocation<br />
later.’’ However, since job security is an issue of paramount importance to<br />
everyone at the plant, the external consultant sent by corporate headquarters<br />
to introduce Business Process Reengineering received grudging cooperation.<br />
But the Business Process Reengineering initiative has created side effects of its<br />
own. One is that executives, middle managers, and supervisors are uncertain<br />
about their roles and the results expected of them. Another is that employees,<br />
pressured to do better work with fewer resources, are complaining bitterly<br />
about compensation or other reward practices that they feel do not reflect<br />
their increased responsibilities, efforts, or productivity. And a fourth storm<br />
is brewing. Corporate executives, it is rumored, are considering moving all<br />
production facilities offshore to take advantage of reduced labor and employee<br />
health-care insurance costs. Many employees are worried that this is really not<br />
a rumor but is, instead, a fact.<br />
Against this backdrop, Linda has noticed that it is becoming more difficult<br />
to find backups for hourly workers and ensure leadership continuity in the<br />
plant’s middle and top management ranks. Although the company has long<br />
conducted an annual ‘‘succession planning and management’’ ritual in which<br />
standardized forms, supplied by corporate headquarters, are sent out to managers<br />
by the plant’s human resources department, Linda cannot remember<br />
when the forms were actually used during a talent search. The major reason,<br />
Linda believes, is that managers and employees have rarely followed through<br />
on the Individual Development Plans (IDPs) established to prepare people for<br />
advancement opportunities.
10 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Defining Succession Planning and Management<br />
As the vignettes above illustrate, organizations need to plan for talent to assume<br />
key leadership positions or backup positions on a temporary or permanent<br />
basis. Real-world cases have figured prominently in the business press in<br />
recent years. (See Exhibits 1-1 and 1-2.)<br />
Among the first writers to recognize that universal organizational need was<br />
Henri Fayol (1841–1925). Fayol’s classic fourteen points of management, first<br />
enunciated early in the twentieth century and still widely regarded today, indicate<br />
that management has a responsibility to ensure the ‘‘stability of tenure of<br />
personnel.’’ 1 If that need is ignored, Fayol believed, key positions would end<br />
up being filled by ill-prepared people.<br />
Succession planning and management (SP&M) is the process that helps<br />
ensure the stability of the tenure of personnel. It is perhaps best understood<br />
as any effort designed to ensure the continued effective performance of an<br />
organization, division, department, or work group by making provision for the<br />
development, replacement, and strategic application of key people over time.<br />
Succession planning has been defined as:<br />
a means of identifying critical management<br />
positions, starting at the levels of project manager<br />
and supervisor and extending up to the<br />
highest position in the organization. Succession<br />
planning also describes management<br />
positions to provide maximum flexibility in<br />
lateral management moves and to ensure that<br />
as individuals achieve greater seniority, their<br />
management skills will broaden and become<br />
more generalized in relation to total organizational<br />
objectives rather than to purely departmental<br />
objectives. 2<br />
Succession planning should not stand alone. It should be paired with succession<br />
management, which assumes a more dynamic business environment.<br />
It recognizes the ramifications of the new employment contract, whereby corporations<br />
no longer (implicitly) assure anyone continued employment, even<br />
if he or she is doing a good job. 3<br />
An SP&M program is thus a deliberate and systematic effort by an organization<br />
to ensure leadership continuity in key positions, retain and develop intellectual<br />
and knowledge capital for the future, and encourage individual<br />
advancement. Systematic ‘‘succession planning occurs when an organization<br />
adapts specific procedures to insure the identification, development, and longterm<br />
retention of talented individuals.’’ 4<br />
Succession planning and management need not be limited solely to man-
What Is Succession Planning and Management?<br />
11<br />
Exhibit 1-1. How General Electric Planned the Succession<br />
Good news, bad news.<br />
The idea that the hard-nosed CEO of a major corporation would lose sleep over<br />
giving bad news to two executives takes a bit of swallowing.<br />
It happens to be true. The CEO in question was Jack Welch, boss of General Electric<br />
(GE). The bad news he had to impart was that James McNerney, head of GE’s<br />
aircraft-engine business, and Robert Nardelli, chief of the business making turbines<br />
and generators for electric utilities, would not be succeeding Welch as CEO.<br />
Welch had delivered bad news any number of times before, but the circumstances<br />
here were different. He said: ‘‘I’ve fired people my whole career—for performance.<br />
Here I’ve got three guys who’ve been great.’’<br />
The third guy was Jeffrey R. Immelt, head of GE’s medical-system’s business and the<br />
ultimate winner. Later this year he will become chief executive of the world’s most<br />
valuable company.<br />
The process of choosing Welch’s successor, throughout shrouded in the utmost<br />
secrecy, had taken six years, five months and two days. The story that has now<br />
emerged is curious in many ways. Most significantly, Welch and the board broke<br />
what are considered to be the rules in corporate-succession planning.<br />
No Room for Outsiders<br />
Traditionally, approaches might include naming a chief operating officer or other<br />
heir apparent. An outsider might be considered or some common template used for<br />
measuring candidates.<br />
These possibilities were eschewed and the time factor was remarkable, too. Bestpractice<br />
guidelines for boards suggest use of fewer than 100 director-hours to go<br />
through the succession processes. GE’s board spent thousands of hours over several<br />
years.<br />
Two factors make GE’s approach worthy of further examination. First, many major<br />
U.S. companies have recently failed in their choice of a new CEO, which suggests<br />
something is wrong with the way that the boss is picked. Second, Welch has, in his<br />
20 years at the top, proved himself to be a CEO with a very sure touch.<br />
The succession process began formally in June 1994, when Welch was 59. During<br />
a board management development and compensation committee (MDCC) meeting,<br />
24 candidates were discussed in three groups. ‘‘Obvious field’’ covered the<br />
seven men running GE’s largest businesses. ‘‘Contenders’’ were four executives just<br />
below the top tier, and 13 others admired by Jack Welch were included under<br />
‘‘broader consensus field.’’ This was the list that produced the three ‘‘finalists.’’<br />
(continues)
12 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Exhibit 1-1. (continued)<br />
Welch has said that the process was about ‘‘chemistry, blood, sweat, family, feelings’’<br />
not simply mechanics, and what happened from 1994 onwards backs that<br />
up.<br />
Getting to Know Candidates<br />
Every candidate was tested for his ability to grow and Welch also wanted directors<br />
to get to know the leading candidates. Directors and candidates mixed socially, for<br />
example at the Augusta National Golf Club before the U.S. Masters tournament,<br />
and played golf together at GE’s headquarters in Fairfield, Connecticut. Welch also<br />
encouraged candidates to call directors directly, bypassing him, when they thought<br />
it would be useful.<br />
More formally, regular board events provided the opportunity for hundreds of director-hours<br />
each year devoted to discussing potential successors.<br />
A couple of years after the process began, Welch and the MDCC decided that<br />
committee members needed to know more about leading candidates. The committee<br />
spent a year or so visiting several GE businesses. It was a highly unusual practice<br />
in the corporate world and one smokescreen involved taking in more visits than<br />
were necessary for the succession process.<br />
By December 1997, the field was down to eight. Gradually several men effectively<br />
dropped out of the running. When head of lighting, David Calhoun, left to run the<br />
Employers Reinsurance business within GE Capital, he was correctly viewed as an<br />
ex-candidate. Finally, it was down to three: McNerney, Nardelli and Immelt.<br />
Welch continued to buck convention. At this point he might have brought the top<br />
contenders to jobs at GE headquarters where he and the board could have had<br />
them under intense scrutiny. But what he wanted to avoid was the ‘‘political and<br />
poisonous’’ atmosphere created 20 years earlier when he had been a contender at<br />
HQ himself. Then, as he jockeyed for pole position, he had at lunch to ‘‘sit across<br />
from the guys you were competing with.’’<br />
McNerney, Nardelli and Immelt continued therefore, hundreds of miles apart, to<br />
run their own businesses.<br />
If everyone at GE is to be believed, six years of discussion took place before a name<br />
was put forward as the proposed winner. Director Frank Rhodes, Professor Emeritus<br />
at Cornell University, was the first to break ranks. He opted for Immelt; other directors<br />
agreed and, though the announcement was four months away, it was clear<br />
which way the wind was blowing.<br />
Skeptics Confounded<br />
In late October, GE announced its biggest ever acquisition—Honeywell for $45<br />
billion in stock. This delayed announcement of the succession but the skeptical view
What Is Succession Planning and Management?<br />
13<br />
that Welch was reluctant to give up power proved unfounded: Immelt will take over<br />
in December, eight months later than originally scheduled.<br />
Welch flew to Cincinnati and Albany to give McNerney and Nardelli respectively the<br />
bad news. Both men are now CEOs elsewhere. Welch says he will never reveal the<br />
reasons that Immelt emerged triumphant, but his youth—he is 44—his popularity<br />
and the perception that he has the greatest capacity to grow must all have been<br />
factors. Frank Rhodes said that he demonstrated ‘‘the most expansive thinking.’’<br />
If he is to survive and flourish like his predecessor, Immelt will need to continue to<br />
develop that quality.<br />
The General Electric approach to finding Jack Welch’s successor as CEO was thorough<br />
to the point of overkill. On the other hand, we are talking about the world’s<br />
most valuable company. Welch was absolutely determined to succeed, where many<br />
major companies have failed recently, in finding the right man for the job. It will be<br />
fascinating to see whether Jeffrey Immelt fits the bill.<br />
Note: This was a precis of an article by Geoffrey Colvin, entitled ‘‘Changing of the Guard,’’ which was published in Fortune,<br />
January 8, 2001.<br />
Source: ‘‘How General Electric Planned the Succession,’’ Human Resource Management International Digest 9:4 (2001), 6–8.<br />
Used with permission of Human Resource Management International Digest.<br />
agement positions or management employees. Indeed, an effective succession<br />
planning and management effort should also address the needs for critical<br />
backups and individual development in any job category—including key people<br />
in the professional, technical, sales, clerical, and production ranks. The<br />
need to extend the definition of SP&M beyond the management ranks is becoming<br />
more important as organizations take active steps to build highperformance<br />
and high-involvement work environments in which decision<br />
making is decentralized, leadership is diffused throughout an empowered<br />
workforce, and proprietary technical knowledge accumulated from many years<br />
of experience in one corporate culture is key to doing business.<br />
One aim of SP&M is to match the organization’s available (present) talent<br />
to its needed (future) talent. Another is to help the organization meet the<br />
strategic and operational challenges facing it by having the right people at the<br />
right places at the right times to do the right things. In these senses, SP&M<br />
should be regarded as a fundamental tool for organizational learning because<br />
SP&M should ensure that the lessons of organizational experience—what is<br />
sometimes called institutional memory—will be preserved and combined<br />
with reflection on that experience to achieve continuous improvement in work<br />
results (what is sometimes called double loop learning). 5 Stated in another<br />
way, SP&M is a way to ensure the continued cultivation of leadership and<br />
intellectual talent, and to manage the critically important knowledge assets of<br />
organizations.<br />
(text continues on page 16)
14 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Exhibit 1-2. The Big Mac Succession<br />
Jim Cantalupo’s sudden death brought out the best in McDonald’s board. At his<br />
first annual meeting as chief executive, Jim Cantalupo faced an angry shareholder<br />
displaying photos of a filthy McDonald’s toilet and demanding action. ‘‘We are<br />
going to take care of it,’’ he pledged. And he did. His strategy of ending the rapid<br />
expansion of the world’s biggest fast-food company and refocusing it on providing<br />
better meals in cleaner restaurants with improved service was starting to produce<br />
encouraging results. Then, on April 19th, he suddenly died. The death of a leader<br />
at such a critical time can ruin a company. But, thanks not least to Mr. Cantalupo,<br />
it will probably not ruin McDonald’s.<br />
Mr. Cantalupo was a McDonald’s veteran. He joined the company in 1974, as an<br />
accountant in its headquarters near Chicago. As head of international operations,<br />
he presided over much of the globalization of the Big Mac: McDonald’s now has<br />
more than 30,000 restaurants in 119 countries. Although promoted to president,<br />
he was passed over for the top job when Jack Greenberg was appointed chief<br />
executive in 1998.<br />
Then McDonald’s began to stumble badly. Service levels came in for increasing<br />
criticism, sales began to fall and the company suffered its first quarterly loss. It also<br />
became embroiled in the debate about obesity and the role of fast food. McDonald’s<br />
was even sued by some parents for making their children fat. (Although this<br />
failed, a future lawsuit may yet succeed.) Mr. Greenberg put a recovery plan into<br />
action and vowed to stay on to execute it, only to be forced out by worried investors.<br />
The board turned to Mr. Cantalupo, who came out of retirement to take over as<br />
chairman and chief executive in January 2003.<br />
Mr. Cantalupo, who was 60, died of a suspected heart attack at a huge convention<br />
in Orlando, Florida, for more than 12,000 employees, suppliers, owners, and operators<br />
of McDonald’s restaurants worldwide. It was the sort of big meet-the-troops<br />
event that the affable Mr. Cantalupo enjoyed.<br />
Those members of the board already in Florida quickly assembled and others joined<br />
by phone. Within six hours, Charlie Bell, a 43-year-old Australian who had been<br />
appointed chief operating officer by Mr. Cantalupo and had been working closely<br />
with him, was made chief executive. Andrew McKenna, 74, the board’s presiding<br />
director and also the boss of Schwarz, which supplies McDonald’s with lots of packaging<br />
materials, was appointed non-executive chairman.<br />
The speech that Mr. Cantalupo was due to give to welcome the delegates was later<br />
given by Mr. Bell, who joined the McDonald’s empire when, aged 15, he got a parttime<br />
job in an outlet in a suburb of Sydney. So he knows how to flip a burger. The<br />
delegates were clearly saddened, but they gave Mr. Bell, the first non-American to<br />
lead the company, a resounding reception. Mr. Cantalupo would have approved.
What Is Succession Planning and Management?<br />
15<br />
So did Jeffrey Sonnenfeld, head of the Chief Executive Leadership Institute at Yale<br />
University. ‘‘It was a board operating at its finest,’’ says Mr. Sonnenfeld, author of<br />
‘‘The Hero’s Farewell,’’ a book about the contentious job of selecting a new boss.<br />
Concerning Mr. Cantalupo, the McDonald’s board has twice acted impressively, he<br />
says. First, it acted decisively in reversing course and turning to Mr. Cantalupo when<br />
things went wrong. Second, it acted swiftly to execute a succession plan that Mr.<br />
Cantalupo himself had put into place, even though he was expected to remain in<br />
the job for several more years. Mr. Bell had been widely acknowledged as Mr.<br />
Cantalupo’s heir apparent.<br />
Succession planning can be fraught with difficulty, and is all too often neglected.<br />
Vodafone had no succession strategy in place when, in December 2002, Sir Christopher<br />
Gent, its chief executive, said he would leave. A search for a replacement led to<br />
Arun Sarin, a non-executive director, being given the job. Now Vodafone operates a<br />
succession-planning process in every country where it has a business. But more<br />
formal procedures, though on balance superior, can cause difficulties, especially if<br />
an officially anointed heir starts to get restless (i.e., Prince Charles syndrome). And<br />
it takes a trusting, well-disciplined board to stick to a succession plan, as the General<br />
Electric board did when Jack Welch groomed three potential contenders for his<br />
job.<br />
A sudden death can be the toughest kind of succession to deal with. Some bosses<br />
are said to leave a sealed envelope holding the name of a preferred successor in<br />
the event of a fatality. Yet the succession at McDonald’s, forced on it by tragic<br />
circumstances, contrasts sharply with that now under way at Coca-Cola. Ever since<br />
Roberto Goizueta, Coke’s pioneering boss, died of lung cancer in 1997, the firm<br />
has been beset by troubles. Douglas Ivester was appointed quickly to replace Mr.<br />
Goizueta, but two years later was forced to step down. In February, his successor,<br />
Douglas Daft, suddenly announced that he would retire by the end of this year.<br />
Coke is said to want James Kilts, the boss of Gillette, for the top job—but he may<br />
not want it. Publicly looking outside its ranks for a leader is interpreted by some<br />
analysts as evidence of management weakness within.<br />
McDonald’s could not be accused of that, although Mr. Bell still has to prove his<br />
worth. New menus, featuring smaller portions and such healthier things as salads<br />
and bottled water, are reviving the company’s image. But at the same time the<br />
company cannot afford to drive away its many fans of burgers and fries. Simply<br />
getting them to come back more often could do wonders for McDonald’s profits.<br />
There are valuable lessons to be learned from successful markets, such as Australia<br />
and France—both places where Mr. Bell has worked. But there remains a long way<br />
to go, and things could yet become extremely difficult. Even planning well ahead<br />
and having a chosen successor ready and waiting, though better than not doing so,<br />
is no guarantee that the successor will actually be a success.<br />
Source: ‘‘Business: The Big Mac Succession: Face Value,’’ The Economist 371:8372 (2004), 74. Used with permission of The<br />
Economist.
16 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Distinguishing Succession Planning and Management from<br />
Replacement Planning, Workforce Planning, Talent<br />
Management, and Human Capital Management<br />
Terminology can be confusing. And that fact is as true with succession planning<br />
and management as it is with anything else. So, how can succession planning<br />
and management be distinguished from replacement planning?<br />
Workforce planning? Talent management? Human capital management?<br />
Succession Planning and Management and Replacement Planning<br />
Succession planning and management should not be confused with replacement<br />
planning, though they are compatible and often overlap. The obvious<br />
need for some form of replacement planning is frequently a driving force behind<br />
efforts that eventually turn into SP&M programs—as Vignettes 1 and 2 at<br />
the opening of this chapter dramatically illustrate. That need was only heightened<br />
by the 1996 plane crash of U.S. Secretary of Commerce Ron Brown,<br />
which also claimed the lives of over thirty other top executives.<br />
In its simplest form, replacement planning is a form of risk management.<br />
In that respect it resembles other organizational efforts to manage risk, such<br />
as ensuring that fire sprinkling systems in computer rooms are not positioned<br />
so as to destroy valuable computer equipment in case of fire, or segregating<br />
accounting duties to reduce the chance of embezzlement. The chief aim of<br />
replacement planning is to limit the chance of catastrophe stemming from the<br />
immediate and unplanned loss of key job incumbents—as happened on a<br />
large scale when the Twin Towers of the World Trade Center collapsed and on<br />
an individual level when the CEO of McDonald’s was stricken by a heart attack.<br />
However, SP&M goes beyond simple replacement planning. It is proactive<br />
and attempts to ensure the continuity of leadership by cultivating talent from<br />
within the organization through planned development activities. It should be<br />
regarded as an important tool for implementing strategic plans.<br />
Succession Planning and Management and Workforce Planning<br />
Workforce planning connotes comprehensive planning for the organization’s<br />
entire workforce. 6 To some people, succession planning and management<br />
refers to top-of-the-organization-chart planning and development only. However,<br />
in this book, succession planning and management refers more broadly<br />
to planning for the right number and right type of people to meet the organization’s<br />
needs over time.<br />
Succession Planning and Management and Talent Management<br />
‘‘Talent management is the process of recruiting, on-boarding, and developing,<br />
as well as the strategies associated with those activities in organizations.’’ 7
What Is Succession Planning and Management?<br />
17<br />
Like so many HR-related terms, ‘‘the phrase talent management is used<br />
loosely and often interchangeably across a wide array of terms such as succession<br />
planning, human capital management, resource planning, and employee<br />
performance management. Gather any group of HR professionals in a room<br />
and you can be sure to have a plethora of additional terms.’’ 8 Some organizational<br />
leaders associate talent management with efforts to devote special attention<br />
to managing the best-in-class talent of the organization—the upper 1 to<br />
10 percent. Not limited to top-of-the-house planning, it may refer to investing<br />
money where the returns are likely to be greatest—that is, on high-performing<br />
or high-potential talent at any organizational level. Hence, efforts to develop<br />
talent that is strategically important for the organization’s future means the<br />
strategic development of talent. 9<br />
Succession Planning and Management and Human Capital<br />
Management<br />
Human capital management (HCM) theory is all about individuals and their<br />
economic value. Unfortunately, HCM has been (too broadly) interpreted to<br />
mean that individuals are calculating players who act out of self-interest only,<br />
that the only value of individuals is as economic commodities (and thus the<br />
saying that ‘‘people are our greatest assets’’), and that the social value of developing<br />
human resources resides only in summing the total value of individual<br />
development efforts. 10 Like talent management, HCM is also a term in search<br />
of meaning. Indeed, ‘‘out of 49 organizations surveyed, just 11 said they attempted<br />
to measure human capital—and many of these confessed to being<br />
unsure what the term meant.’’ 11<br />
But a key point about human capital management is that people are valuable<br />
for more than the labor they can produce. Human beings are enormously<br />
creative—a key thing that sets them apart from machines, gizmos, and gadgets—and<br />
this ability to think creatively has economic value. Individuals, not<br />
computers, discover new ideas that can be turned to profit. As entrepreneurs,<br />
they found companies. They also discover new ways to serve customers, find<br />
new customers or markets for old products, and discover ways to improve<br />
work processes to increase productivity.<br />
A key issue in HCM, then, is that creativity has value. So does the institutional<br />
memory that individuals carry in their heads. While more will be written<br />
about that later in this book, it is worth emphasizing at this point that succession<br />
planning can mean more than just finding warm bodies to fill vacancies.<br />
Additional issues should be considered—such as the value of institutional<br />
memory and creativity.<br />
ASTD has published an important white paper on HCM that is worth reviewing,<br />
since it describes best practices in the area. 12 The U.S. General Ac-
18 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
counting Office has also done work to emphasize the importance of HCM in<br />
U.S. government work. 13<br />
Making the Business Case for Succession Planning and<br />
Management<br />
Many requirements must be satisfied if organizations are to survive in a fiercely<br />
competitive environment. One key requirement is that replacements must be<br />
available to assume critically important positions as they become vacant. Indeed,<br />
‘‘succession planning, like a relay race, has to do with passing on<br />
responsibility. . . . Drop the baton and you lose the race.’’ 14<br />
Numerous surveys over the years have emphasized the importance of<br />
SP&M. Chief executives consistently cite the issue as one of their major concerns.<br />
Leadership succession has also surfaced as an issue of concern to corporate<br />
boards 15 : A survey of corporate board member policies and practices by<br />
Korn/Ferry International asked chairpersons to assess the importance of issues<br />
facing their companies in the next five years. Those typically seen as trendsetters—the<br />
billion-dollar companies—rated management succession as the third<br />
most important issue [emphasis added], on the heels of financial results and<br />
strategic planning. According to Lester Korn, CEO of the search firm, boards<br />
are beginning to realize that they have ‘‘the same obligations to protect the<br />
human resource asset base for the shareholders as they do to protect the balance<br />
sheet of the corporation.’’<br />
There are several reasons that both CEOs and corporate boards are so<br />
interested in SP&M. First, top managers are aware that the continued survival<br />
of the organization depends on having the right people in the right places at<br />
the right times to do the right things. Strategic success is, in large measure, a<br />
function of having the right leadership. Leaving the development of those leaders<br />
to chance, and hoping for the best, may have worked at one time. Ignoring<br />
the development of leaders and depending on headhunters to find replacements<br />
for key people may also have worked at one time. But these approaches<br />
are not working now. Some effort must be made to ensure that the organization<br />
is systematically identifying and preparing high-potential candidates for<br />
key positions.<br />
Second, as continuing downsizing and other cost-containment efforts have<br />
led to reductions in the middle management ranks—a traditional training<br />
ground and source of top management talent—there are simply fewer people<br />
available to advance to the top ranks from within. That means that great care<br />
must be taken to identify promising candidates early and actively cultivate their<br />
development. Individuals who are both high performers on their present jobs<br />
and high potentials for future leadership positions should not be taken for<br />
granted, especially in a seller’s labor market, where exceptionally talented<br />
workers, like star athletes, can barter their abilities to the highest bidders.
What Is Succession Planning and Management?<br />
19<br />
The reason is that slimmed-down organizations have reduced their absolute<br />
numbers. Worse yet, members of this group are differentially affected by downsizing<br />
because, as work is redistributed after a downsizing, high performers<br />
end up shouldering more of the burden to get the work out while (in most<br />
cases) the rewards they receive are held constant. They are thus more likely to<br />
become dissatisfied and leave the organization than will their less productive<br />
peers. To avoid that problem—which can be disastrous for the leadership continuity<br />
of the organization—top managers must take active steps to identify,<br />
reward, and advance high performers through vertical and horizontal career<br />
moves in a manner commensurate with their increased contributions.<br />
Third, when SP&M is left informal and thus unplanned, job incumbents<br />
tend to identify and groom successors who are remarkably like themselves in<br />
appearance, background, and values. They establish a ‘‘bureaucratic kinship<br />
system’’ that is based on ‘‘homosocial reproduction.’’ 16 As Rosabeth Moss<br />
Kanter explained:<br />
Because of the situation in which managers<br />
function, because of the position of managers<br />
in the corporate structure, social similarity<br />
tends to become extremely important to them.<br />
The structure sets in motion forces leading to<br />
the replication of managers as the same kind<br />
of social individuals. And the men who manage<br />
reproduce themselves in kind. 17<br />
As a consequence, white males tend to pick as successors other white males.<br />
(It is worth noting that white males are not the only ones guilty of picking<br />
people like themselves because people of other sexes, races, and backgrounds<br />
will do likewise.) That practice, of course, perpetuates such problems as the<br />
so-called glass ceiling and other subtle forms of employment discrimination.<br />
To avoid these problems and promote diversity and multiculturalism in the<br />
workplace, systematic efforts must be made to identify and groom the best<br />
successors for key positions, not just those who are clones of the present key<br />
job incumbents.<br />
Succession planning and management is important for other reasons as<br />
well. Indeed, it ‘‘forms the basis for (1) communicating career paths to each<br />
individual; (2) establishing development and training plans; (3) establishing<br />
career paths and individual job moves; (4) communicating upward and laterally<br />
concerning the management organization; and, (5) creating a more comprehensive<br />
human resources planning system.’’ 18<br />
As I have toured the country—and other countries—to do public speaking<br />
and consulting about succession, I am often asked, ‘‘How do we make the<br />
case for succession in our organizations?’’ To answer that, I ask whether the<br />
questioners face supportive or skeptical CEOs. If the CEO is supportive, then
20 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
the most important customer has already been convinced. But if the CEO is<br />
skeptical, then some effort should be made to analyze the risks that the organization<br />
may face. (This is called risk analysis.)<br />
One way to do that is to request from the payroll department the projected<br />
retirement dates for the organization’s entire workforce. That should also be<br />
done for three-year rolling periods to assess what percentage of the workforce<br />
is eligible to retire at various points in time. Then the percentage of workers<br />
eligible to retire can be assessed by location, job code, or level on the corporate<br />
hierarchy. The goal is to see if some areas, levels, or regions will be more<br />
at risk than others. If the results are shocking (and sometimes they are), then<br />
the data may convince a skeptical CEO that something must be done to develop<br />
talent—and preserve the specialized knowledge, gained from experience,<br />
of those who are about to leave—in areas deemed particularly at risk.<br />
Reasons for a Succession Planning and Management<br />
Program<br />
Why should an organization support a systematic SP&M program? To answer<br />
that question I updated a survey that I sent out in 1993 for the first edition of<br />
this book. (The first survey was mailed to 350 randomly selected members of<br />
the ASTD in October 1993.) The survey for the second edition of this book was<br />
mailed in December 1999 to 742 members of the Society for Human Resources<br />
Management (SHRM). A follow-up mailing was sent in January 2000 to SHRM<br />
members, and a second follow-up mailing went out in February 2000. The<br />
survey for the third edition of this book was sent out in early 2004 to members<br />
of the International Society for Performance Improvement (ISPI), and the results<br />
were compiled in July 2004. Exhibit 1-3 presents demographic information<br />
about the respondents’ industries from the 2004 survey; Exhibit 1-4 charts<br />
the sizes of the respondents’ organizations; Exhibit 1-5 presents information<br />
about the respondents’ job functions; and Exhibit 1-6 summarizes the respondents’<br />
perceptions about the chief reasons their organizations operate systematic<br />
SP&M programs. These reasons are discussed further, in order of their<br />
importance, in the sections that follow. Each reason corresponds to a possible<br />
goal to be achieved by the SP&M program.<br />
Reason 1: Contribute to Implementing the Organization’s Strategic<br />
Business Plans<br />
Succession planning and management should not be conducted in a vacuum;<br />
rather, it should be linked to, and supportive of, organizational strategic plans,<br />
human resource plans, human resource development plans, and other organizational<br />
planning activities. Perhaps for this reason, my survey respondents
What Is Succession Planning and Management?<br />
21<br />
Exhibit 1-3. Demographic Information About Respondents to a 2004<br />
Survey on Succession Planning and Management: Industries<br />
Question: In what industry is your organization classified?<br />
Industry Frequency Percentage<br />
Manufacturing 2 9.09%<br />
Transportation/<br />
Communication/<br />
Electric/Gas 1 4.55%<br />
Retail Trade 1 4.55%<br />
Finance/Insurance/Real Estate 5 22.73%<br />
Healthcare 1 4.55%<br />
Government/Armed Forces 6 27.27%<br />
Other 6 27.27%<br />
Total 22 100.00%<br />
Note: Not all respondents chose to answer this question.<br />
Source: William J. Rothwell, Results of a 2004 Survey on Succession Planning and Management Practices. Unpublished survey<br />
results (University Park, Penn.: The Pennsylvania State University, 2004).<br />
Exhibit 1-4. Demographic Information About Respondents to a 2004<br />
Survey on Succession Planning and Management: Size<br />
Question: How many people does your organization employ?<br />
Organization Size Frequency Percentage<br />
0–99 2 9.09%<br />
100–249 2 9.09%<br />
250–499 2 9.09%<br />
500–1999 5 22.73%<br />
2000–4999 5 22.73%<br />
5000 or more 6 27.27%<br />
Total 22 100.00%<br />
Note: Not all respondents chose to answer this question.<br />
Source: William J. Rothwell, Results of a 2004 Survey on Succession Planning and Management Practices. Unpublished survey<br />
results (University Park, Penn.: The Pennsylvania State University, 2004).<br />
indicated that the most important reason to sponsor systematic SP&M is to<br />
‘‘contribute to implementing the organization’s strategic plan.’’<br />
Strategic planning is the process by which organizations choose to survive<br />
and compete. It involves formulating and implementing a long-term plan by<br />
which the organization can take maximum advantage of its present internal<br />
organizational strengths and future external environmental opportunities
22 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Exhibit 1-5. Demographic Information about Respondents to a 2004<br />
Survey on Succession Planning and Management: Job Functions of<br />
Respondents<br />
Question: What is your job function?<br />
Job Function Frequency Percentage<br />
Trainer or Training Manager 10 45.45%<br />
Human Resource Manager 7 31.82%<br />
Other 5 22.73%<br />
Total 22 100.00%<br />
Note: Not all respondents chose to answer this question.<br />
Source: William J. Rothwell, Results of a 2004 Survey on Succession Planning Practices. Unpublished survey results (University Park,<br />
Penn.: The Pennsylvania State University, 2004).<br />
while minimizing the effects of present internal organizational weaknesses and<br />
future external environmental threats.<br />
To implement a strategic plan, organizations require the right people<br />
doing the right things in the right places and at the right times. Without them,<br />
strategic plans cannot be realized. Hence, leadership identification and succession<br />
are critical to the successful implementation of organizational strategy.<br />
Particularly at top management levels, as Thomas Gilmore explains, ‘‘performance<br />
criteria are rarely cut and dried. They often flow from a strategic plan<br />
which the chief executive is responsible for developing and carrying out.’’ 19 At<br />
least five different approaches may be used to integrate strategic plans and<br />
succession plans 20 :<br />
1. The Top-Down Approach. Corporate strategy drives SP&M. Leaders<br />
identified through a systematic SP&M process support the successful<br />
implementation of strategy.<br />
2. The Market-Driven Approach. Succession planning and management is<br />
governed by marketplace needs and requirements. As necessary talent<br />
is required to deal with competitive pressures, it is sought out.<br />
3. The Career Planning Approach. Succession planning and management<br />
is tied to strategic plans through individual career planning processes.<br />
In consultation with their organizational superiors and others, individuals<br />
examine their own career goals in light of the organization’s strategy<br />
and make decisions about how they can best contribute to emerging<br />
organizational needs while also improving their own chances for eventual<br />
advancement.<br />
4. The Futuring Approach. Succession planning and management becomes<br />
a vehicle for anticipating talent needs stemming from corporate<br />
strategy. It is viewed as a way to scan external environmental conditions
What Is Succession Planning and Management?<br />
23<br />
Exhibit 1-6. Reasons for Succession Planning and Management Programs<br />
Question: There are many reasons decision-makers may wish to establish a Succession<br />
Planning program in an organization. For each reason listed in the left column<br />
below, please circle a response code in the right column indicating how important<br />
you believe that reason to be for your organization. Use the following scale: 1 <br />
Not at all important; 2 Not Important; 3 Somewhat Important; 4 Important;<br />
5 Very Important.<br />
Reasons for Sponsoring Succession Planning<br />
Importance in Your Organization<br />
(Mean Response)<br />
Contribute to implementing the organization’s<br />
strategic business plans. 4.56<br />
Identify replacement needs as a means of targeting<br />
necessary training, employee education,<br />
and employee development. 4.44<br />
Increase the talent pool of employees. 4.33<br />
Provide increased opportunities for highpotential<br />
workers. 4.22<br />
Tap the potential for intellectual capital in the<br />
organization. 4.11<br />
Help individuals realize their career plans within<br />
the organization. 3.89<br />
Encourage the advancement of diverse groups<br />
—such as minorities or women—in future jobs<br />
within the organization. 3.67<br />
Improve employee morale. 3.33<br />
Improve employees’ ability to respond to<br />
changing environmental demands. 3.22<br />
Cope with the effects of voluntary separation<br />
programs—such as early retirement offers and<br />
employee buyouts. 2.78<br />
Cope with effects of downsizing. 2.44<br />
Decide what workers can be terminated without<br />
damage to the organization. 2.22<br />
Reduce headcount to essential workers only. 2.00<br />
Source: William J. Rothwell, Results of a 2004 Survey on Succession Planning and Management Practices. Unpublished survey<br />
results (University Park, Penn.: The Pennsylvania State University, 2004).
24 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
and match the organization’s internal talent to the demands created by<br />
those conditions.<br />
5. The Rifle Approach. Succession planning and management is focused<br />
on solving specific, identifiable problems confronting the organization,<br />
such as higher-than-expected turnover in some organizational levels or<br />
job categories. (One trend is to single out and track the turnover of<br />
high potentials in the organization, which is called critical turnover.)<br />
Consider what role SP&M should play in supporting the strategic plans of<br />
your organization. In doing that, realize that ‘‘there is no one universal approach<br />
that works well across all companies; rather, effective companies match<br />
their succession strategies to their business strategies.’’ 21<br />
Related to strategic planning is human resource planning (HRP), which<br />
is ‘‘the process of analyzing an organization’s human resource needs under<br />
changing conditions and developing the activities necessary to satisfy these<br />
needs.’’ 22 HRP is comprehensive in scope, examining an organization’s workforce<br />
and work requirements. One result of HRP should be a long-term plan<br />
to guide an organization’s personnel policies, programs, and procedures. 23<br />
Few authorities dispute the growing importance of HRP. As Manzini and<br />
Gridley note, ‘‘The need for people with increasingly specialized skills, higher<br />
managerial competencies, and commitment to new levels of excellence, with<br />
professional qualifications in disciplines that did not exist a few decades<br />
ago—at costs commensurate with their contribution to organizational objectives—is<br />
and will continue to be the overriding ‘business’ concern of the organization.’’<br />
24 Succession planning and management is integrally related to HRP,<br />
though SP&M is usually focused more on leadership needs and leadership<br />
skills. Many techniques and approaches that have evolved for use in HRP may<br />
also be applied to SP&M.<br />
Succession planning and management should focus on identifying and developing<br />
critically important leadership talent. Moreover, SP&M may rely on<br />
means other than planned learning or promotion from within to meet talent<br />
requirements. For instance, critical succession needs may be met by external<br />
recruitment, internal transfer, or other means.<br />
Reason 2: Identify ‘‘Replacement Needs’’ as a Means of Targeting<br />
Necessary Training, Employee Education, and Employee Development<br />
The second reason cited by survey respondents for organizations to sponsor<br />
systematic SP&M is to ‘‘identify ‘replacement needs’ as a means of targeting<br />
necessary training, employee education, and employee development.’’ In<br />
other words, SP&M becomes a driving force to identify justifiable employee<br />
training, education, and development needs. Training helps employees meet<br />
their current job responsibilities; employee education prepares them to ad-
What Is Succession Planning and Management?<br />
25<br />
vance to future responsibilities; and employee development can be a tool for<br />
individual enlightenment or organizational learning.<br />
Reason 3: Increase the Talent Pool of Promotable Employees<br />
Respondents in organizations sponsoring systematic SP&M cited the third<br />
most important reason as to ‘‘increase the talent pool of promotable employees.’’<br />
Succession planning and management formalizes the process of preparing<br />
people to fill key positions in the future. Of course, the term talent pool<br />
may mean a group of individuals—rather than one identifiable successor—<br />
from which possible successors for key positions may be selected.<br />
Reason 4: Provide Increased Opportunities for ‘‘High Potential’’<br />
Workers<br />
My survey respondents indicated that the fourth important reason to sponsor<br />
systematic SP&M is to ‘‘provide increased opportunities for ‘high potential’<br />
workers.’ ’’ Although definitions of high potentials (HiPos) may differ, they<br />
are usually regarded as those employees who have the potential for future<br />
advancement. Hence, a very important reason for SP&M is to identify appropriate<br />
ways to accelerate HiPo development and improve the retention of talented<br />
people with potential. 25 A few important retention strategies are<br />
summarized in Exhibit 1-7.<br />
Reason 5: Tap the Potential for Intellectual Capital in the Organization<br />
Intellectual capital refers to the value of the human talents in an organization.<br />
Tapping the potential for intellectual capital was cited as the fifth most important<br />
reason for an SP&M program in an organization. SP&M is thus important<br />
in making and realizing investments in intellectual capital in the organization.<br />
Reason 6: Help Individuals Realize Their Career Plans Within the<br />
Organization<br />
Organizations make a substantial investment in the training of their employees.<br />
Employee performance may improve with experience as individuals advance<br />
along a learning curve in which they master organization-specific and<br />
job-specific knowledge. When individuals leave an organization, their loss can<br />
be measured. 26 If they remain with one employer to realize their career plans,<br />
then the employer benefits from their experiences. In this sense, then, SP&M<br />
can serve as a tool by which individuals can be prepared for realizing their<br />
career plans within the organization. That reason was cited by my survey respondents<br />
as the sixth most important for organizations to sponsor systematic<br />
SP&M.
26 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Exhibit 1-7. Strategies for Reducing Turnover and Increasing Retention<br />
Possible Causes of Turnover<br />
People leave the organization<br />
because they:<br />
Possible Strategies for<br />
Increasing Retention<br />
Are dissatisfied with their Assess the extent of this problem by<br />
future prospects in the organi-<br />
using attitude surveys (paper-based or<br />
zation or believe they have<br />
online), by using exit interviews with<br />
better prospects for the future<br />
departing workers, and by running<br />
in another organization.<br />
selected focus groups to gather information.<br />
Give people hope by establishing and<br />
communicating about a succession<br />
planning and management program.<br />
Establish or improve job posting programs,<br />
job rotations, and other efforts to<br />
give people more exposure and visibility<br />
within the organization.<br />
Improve communication about the future<br />
of the organization and what that<br />
might mean for individuals in it.<br />
Dislike their supervisors and/ Assess the extent of this problem by<br />
or their supervisors’ approach<br />
using attitude surveys (paper-based or<br />
to supervision.<br />
online) and by using exit interviews with<br />
departing workers.<br />
Improve supervisory training, with special<br />
emphasis on addressing sources of<br />
dissatisfaction that influence turnover.<br />
Establish or improve job posting programs,<br />
job rotations, and other efforts to<br />
give people more exposure and visibility<br />
within the organization.<br />
Dislike the kind of work that Assess the extent of this problem by<br />
they do or the kind of assign-<br />
using attitude surveys (paper-based or<br />
ments that they have been<br />
online), by using exit interviews with<br />
given.<br />
departing workers, and by running<br />
selected focus groups to gather information.<br />
Establish or improve job posting programs,<br />
job rotations, and other efforts to<br />
give people more exposure and visibility<br />
within the organization.
What Is Succession Planning and Management?<br />
27<br />
Dislike their wage or salary Assess the extent of this problem by<br />
level, believe it is not competi-<br />
using attitude surveys (paper-based or<br />
tive, or believe they are not<br />
online), by using exit interviews with<br />
compensated in a way com-<br />
departing workers, and by running<br />
mensurate with their contribu-<br />
selected focus groups to gather infortions.<br />
mation.<br />
Conduct regular wage and salary surveys<br />
outside the organization.<br />
Clarify the organization’s philosophy of<br />
rewards (‘‘Do we want to pay only at<br />
competitive levels? If so, why?’’).<br />
Make use of innovative reward and<br />
compensation practices that go beyond<br />
mere considerations of wages to include<br />
alternative reward and alternative<br />
recognition programs and ‘‘cafeteria<br />
rewards’’ tailored to individual needs.<br />
Are stressed out or burned out Assess the extent of this problem by<br />
from too much work or too<br />
using attitude surveys (paper-based or<br />
little personal rest and recre-<br />
online), by using exit interviews with<br />
ational time.<br />
departing workers, and by running<br />
selected focus groups to gather information.<br />
Take steps to add a component on<br />
work-life balance in descriptions of<br />
high-potentials and high performance<br />
and communicate that change to the organization.<br />
Add to the social life of the organization<br />
by stepping up social activities and reexamining<br />
to whom and how work is<br />
allocated.<br />
Reason 7: Encourage the Advancement of Diverse Groups<br />
The workforce in the United States is only becoming more diverse, reflecting<br />
the nation’s increasingly diverse population. Unfortunately, not all workers<br />
have historically been treated equally or equitably. Discrimination, while prohibited<br />
by federal and state laws, still occurs. Indeed, the realization of that<br />
prompted Supreme Court Justice Thurgood Marshall to explain that, as a black<br />
in America in 1991, he did not feel free. 27 While reactions to that view may<br />
vary, there is increasing recognition of a need to promote multiculturalism,<br />
which involves increasing the consciousness and appreciation of differences
28 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
associated with the heritage, characteristics, and values of many different<br />
groups, as well as respecting the uniqueness of each individual. In this approach,<br />
diversity has a broad meaning that encompasses sex and ethnic<br />
groups along with groups based on such attributes as nationality, professional<br />
discipline, or cognitive style. 28<br />
Perhaps as an indication of increasing recognition that organizations have<br />
a responsibility to pursue diversity at all levels, respondents to my survey indicated<br />
that ‘‘encouraging the advancement of diverse groups’’ was the seventh<br />
most important reason for organizations to sponsor systematic SP&M. Many<br />
organizations build in to their SP&M programs special ways to accelerate the<br />
development of protected labor classes and diverse groups.<br />
Reason 8: Improve Employee Morale<br />
Succession planning and management can be a means by which to improve<br />
employee morale by encouraging promotion from within. Indeed, promotions<br />
from within ‘‘permit an organization to utilize the skills and abilities of individuals<br />
more effectively, and the opportunity to gain a promotion can serve as an<br />
incentive.’’ 29 Once that goal is achieved, the promoted employee’s example<br />
heartens others. Moreover, particularly during times of forced layoffs, promotions<br />
from within and ‘‘inplacement’’ (movements from within of individuals<br />
otherwise slated for layoff ) can boost morale and can help offset the negative<br />
effects of ‘‘survivor’s syndrome.’’ 30<br />
Reason 9: Improve Employees’ Ability to Respond to Changing<br />
Environmental Demands<br />
A ninth reason to sponsor systematic SP&M is to ‘‘improve employees’ ability<br />
to respond to changing environmental demands,’’ according to the respondents<br />
to my survey. ‘‘One role of the leader,’’ writes Gilmore, ‘‘is to shield<br />
the organization from ambiguity and uncertainty so that people can do their<br />
work.’’ 31 Organizations sponsor SP&M as one means by which to prepare people<br />
to respond to—or even anticipate—changing environmental demands.<br />
People groomed for key positions transform the ambiguity and uncertainty of<br />
changing external environmental demands into vision and direction.<br />
Reason 10: Cope with the Effects of Voluntary Separation Programs<br />
My respondents identified ‘‘coping with the effects of voluntary separation<br />
programs’’ as the tenth most important reason that organizations sponsor systematic<br />
SP&M. Voluntary separation is closely related to forced layoffs and is<br />
often a preliminary step to it. In a voluntary separation, employees are offered<br />
incentives to leave the organization—such as prorated pay by years of service
What Is Succession Planning and Management?<br />
29<br />
or years added to retirement. Like a forced layoff, a voluntary separation requires<br />
work to be reallocated as productive employees leave the organization.<br />
That requires some effort to identify ‘‘successors.’’ Hence, SP&M can be valuable<br />
in identifying how—and to whom—work should be reallocated after<br />
workforce restructuring.<br />
Reason 11: Cope with the Effects of Downsizing<br />
An eleventh reason cited by survey respondents for organizations to sponsor<br />
systematic SP&M is to ‘‘cope with effects of downsizing.’’ Downsizing has<br />
been—and continues to be—a fact of life in corporate America. While not as<br />
widely publicized as it once was, downsizing, the evidence suggests, has continued<br />
unabated since before the first edition of this book was published in<br />
1994. Middle managers and professionals have been particularly affected.<br />
While jobs may be eliminated, work does not go away. As a consequence, there<br />
is often a need to identify those who can perform activities even when nobody<br />
is assigned special responsibility for them. Succession planning and management<br />
can be a tool for that purpose.<br />
The respondents to my survey confirm that organizations have continued<br />
to undergo radical workforce restructuring in recent years, a trend first pinpointed<br />
in the 1994 edition of this book. (See Exhibit 1-8.)<br />
Reason 12: Decide Which Workers Can Be Terminated Without<br />
Damage to the Organization<br />
When making hiring decisions, employers have long considered an individual’s<br />
potential for long-term advancement, as well as his or her suitability for<br />
Exhibit 1-8. Workforce Reductions Among Survey Respondents<br />
Question: In the last 5 years, has your organization experienced organization<br />
change? Circle all responses in the right column below that apply.<br />
Organization Change Frequency Percentage<br />
A Layoff 11 21.57%<br />
An Early Retirement Offer 8 15.69%<br />
A Reduction in Force 11 21.57%<br />
A Hiring Freeze 13 25.49%<br />
Reduction by Attrition 17 33.33%<br />
Others 2 3.92%<br />
Total 51 100.00%<br />
Source: William J. Rothwell, Results of a 2004 Survey on Succession Planning and Management Practices. Unpublished survey<br />
results (University Park, Penn.: The Pennsylvania State University, 2004).
30 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
filling an immediate job vacancy. Perhaps for this reason, then, survey respondents<br />
cited ‘‘deciding which workers can be terminated without damage to<br />
the organization’’ as the twelfth most important reason for organizations to<br />
sponsor SP&M.<br />
Reason 13: Reduce Headcount to Essential Workers Only<br />
The thirteenth reason for organizations to sponsor succession planning and<br />
management, as cited by my survey respondents, is to ‘‘reduce headcount to<br />
essential workers only.’’ In an age of fierce competition, processes must be<br />
reengineered to decrease cost, reduce cycle time, and increase quality and<br />
output. Processes must be reexamined in light of results required, not activities<br />
that have traditionally been performed. In such environments, ‘‘companies<br />
don’t need people to fill a slot, because the slot will only be roughly<br />
defined. Companies need people who can figure out what the job takes and<br />
do it, people who can create the slot that fits them. Moreover, the slot will keep<br />
changing.’’ 32 Headcount will also shift to keep pace with shifting requirements.<br />
Best Practices and Approaches<br />
Numerous studies have been conducted of SP&M in recent years. 33 Exhibit 1-9<br />
summarizes some of the key best practices identified from those studies.<br />
There are numerous approaches to SP&M. They may be distinguished by<br />
direction, timing, planning, scope, degree of dissemination, and amount of<br />
individual discretion.<br />
Direction<br />
Who should make the final decisions in SP&M? The answer to that question<br />
has to do with direction. Atop-down approach to succession planning and<br />
management is directed from the highest levels. The corporate board of directors,<br />
CEO, and other top managers oversee program operations—with or without<br />
the assistance of a part-time or full-time SP&M coordinator, a leadership<br />
development specialist, or a human resource generalist assigned to help with<br />
the program. The highest-level leaders make decisions about how competence<br />
and performance will be assessed for present positions, how future competence<br />
and potential will be identified, and what developmental activities—if<br />
any—will be conducted with a view toward preparing individuals for advancement<br />
and building the organization’s bench strength of leadership talent.<br />
In contrast, a bottom-up approach to SP&M is directed from the lowest<br />
levels. Employees and their immediate supervisors actively participate in all<br />
activities pertaining to SP&M. They are also on the lookout for promising people<br />
to assume leadership positions. Decisions about SP&M are closely tied to
What Is Succession Planning and Management?<br />
31<br />
Exhibit 1-9. A Summary of Best Practices on Succession Planning and<br />
Management from Several Research Studies<br />
Based on several research studies of SP&M programs, best practices are:<br />
Best Practices According to Robert M. Fulmer<br />
Deploying a Succession Management Process<br />
Best-practice organizations make succession planning an integral corporate<br />
process by exhibiting a link between succession planning and overall business<br />
strategy. This link gives succession planning the opportunity to affect the corporation’s<br />
long-term goals and objectives.<br />
Human resources is typically responsible for the tools and processes associated<br />
with successful succession planning. Business or line units are generally responsible<br />
for the ‘‘deliverables’’—i.e., they use the system to manage their own staffing<br />
needs. Together, these two groups produce a comprehensive process.<br />
Technology plays an essential role in the succession planning process. Ideally,<br />
technology serves to facilitate the process (make it shorter, simpler, or more flexible)<br />
rather than becoming the focus of the process or inhibiting it in any way.<br />
Identifying the Talent Pool<br />
Best-practice organizations use a cyclical, continuous identification process to<br />
focus on future leaders.<br />
Best-practice organizations use a core set of leadership and succession management<br />
competencies.<br />
Engaging Future Leaders<br />
Best-practice organizations emphasize the importance of specific, individualized<br />
development plans for each employee.<br />
Individual development plans identify which developmental activities are needed,<br />
and the ‘‘best practice’’ firms typically have a mechanism in place to make it<br />
simple for the employee to conduct the developmental activities. Typically, divisional<br />
human resource leaders will monitor employee follow-up in developmental<br />
activities.<br />
Best-practice partners rely on the fundamental developmental activities of coaching,<br />
training, and development most frequently and utilize all developmental activities<br />
to a much greater extent than the sponsor organizations.<br />
In addition to traditional executive education programs, best-practice partners<br />
increasingly use special assignments, action learning, and Web-based development<br />
activities.<br />
Source: Robert M. Fulmer, ‘‘Choose Tomorrow’s Leaders Today: Succession Planning Grooms Firms for Success.’’ Downloaded<br />
on 19 July 2004 from http://gbr.pepperdine.edu/021/succession.html. Used with permission.<br />
(continues)
32 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Exhibit 1-9.<br />
(continued)<br />
Key Best Practices According to William Rothwell<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Use a ‘‘big picture roadmap or model’’ to guide the effort.<br />
Ensure hands-on involvement by the CEO and other senior leaders.<br />
Use competency models to clarify what type of talent the organization’s leaders<br />
want to build.<br />
Develop and implement an effective performance management system.<br />
Lead the target by clarifying what competencies will be needed for the future if<br />
the organization is to achieve its strategic objectives.<br />
Use individual development plans to narrow developmental gaps.<br />
Develop descriptions of the values and ethical standards required and assess<br />
people relative to those as well as competencies.<br />
Build a viewpoint that high-potential talent is a shared resource rather than owned<br />
by specific managers.<br />
Use leadership development efforts to build shared competencies needed for the<br />
future.<br />
Source: William Rothwell, Ed., Effective Succession Management: Building Winning Systems or Identifying and Developing Key<br />
Talent (Lexington, Mass.: The Center for Organizational Research [A division of Linkage, Inc.]). See http://www.cfor.org/News/<br />
article.asp?id4. Used with permission.<br />
Four Key Best Practices According to Chief Executive Magazine<br />
1. Identify. Find HiPo candidates in the organization by using consistent, objective<br />
criteria.<br />
2. Diagnose. Assess individual candidates’ strengths and weaknesses compared to<br />
the organization’s needs.<br />
3. Prescribe. Provide the right development to build competencies in the organization.<br />
4. Monitor. Make sure that the succession process works to build leaders over time.<br />
Source: ‘‘Succession Management: Filling the Leadership Pipeline,’’ Chief Executive, April 2004, pp. 1, 4. Used with permission.<br />
individual career-planning programs, which help individuals assess their present<br />
strengths and weaknesses and future potential. Top managers receive and<br />
act on decisions made at lower levels.<br />
A combination approach attempts to integrate top-down and bottom-up<br />
approaches. Top managers are actively involved in establishing SP&M procedures,<br />
and remain involved in the SP&M program. Employees and their immediate<br />
supervisors are also actively involved in every step of the process. Some<br />
effort is made to integrate SP&M and individual career planning. Often, a suc-
What Is Succession Planning and Management?<br />
33<br />
cession plan without a career plan is a wish list because designated HiPos may<br />
not aspire to the career goals to which managers think they should aspire. A<br />
career plan without a succession plan is a road map without a destination.<br />
Timing<br />
How much time is devoted to SP&M issues—and when is that time devoted to<br />
it? The answer to that question has to do with timing. Succession planning and<br />
management may be conducted fitfully, periodically, or continuously. When<br />
handled fitfully, systematic SP&M does not exist because no effort is made to<br />
plan for succession—with the result that every vacancy can become a crisis.<br />
When handled periodically, SP&M is carried out on a fixed schedule—usually<br />
quarterly or annually. Often it distinctly resembles an employee performance<br />
appraisal program, which is typically part of the SP&M effort. Managers complete<br />
a series of forms that may include a performance appraisal, an individual<br />
potential assessment (or full-circle, multirater assessment), an individual development<br />
plan (IDP), and a replacement chart for their areas of responsibility.<br />
This information is then turned over to the human resources department and/<br />
or to an individual assigned responsibility for SP&M.<br />
When handled continuously, SP&M requires ongoing decision making, information<br />
gathering, and action taking. Less attention is devoted to forms than<br />
to results and developmental activities. Employees at all levels are expected to<br />
contribute to the continuous improvement of themselves and others in the<br />
organization through mentoring, networking, sponsorship, coaching, training,<br />
education, development, and other means.<br />
Planning<br />
How much planning is conducted for succession? The answer to that question<br />
has to do with the planning component of an SP&M program. Succession<br />
planning and management may be a systematic effort that is deliberately<br />
planned and is driven by a written, organization-wide statement of purpose<br />
and a policy. On the other hand, it may be an unsystematic effort that is left<br />
unplanned and informal. An unsystematic effort is driven by the idiosyncrasies<br />
of individual managers rather than by a deliberate plan and strategy for developing<br />
individuals for advancement and for ensuring leadership continuity.<br />
Scope<br />
How many—and what kinds—of people in the organization are covered by<br />
succession plans? The answer to that question has to do with program scope.<br />
Succession planning and management may range from the specialized to the<br />
generalized. A specialized program targets leadership continuity in selected
34 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
job categories, job levels, functions, or locations. Often, such programs grow<br />
out of crises—such as excessive turnover in selected areas of the organization.<br />
On the other hand, a generalized program aims to prepare individuals for<br />
advancement in all job categories, job levels, functions, and locations. It is<br />
often a starting point for identifying individualized training, education, and<br />
development needs and for meeting individual career goals.<br />
Degree of Dissemination<br />
How many people participate in SP&M processes? The answer to that question<br />
has to do with the program’s degree of dissemination. It is a philosophical<br />
issue that stems from—and influences—the organization’s culture. The degree<br />
of dissemination may range from closed to open. A closed SP&M program is<br />
treated as top secret. Managers assess the individual potential of their employees<br />
without the input of those affected by the assessment process. Decisions<br />
about whom to develop—and how to develop them—are limited to a ‘‘needto-know’’<br />
basis. Individual career goals may—or may not—influence these decisions.<br />
Top managers are the sole owners of the SP&M program and permit<br />
little or no communication about it. Secrecy is justified on two counts: (1)<br />
succession issues are proprietary to the organization and may reveal important<br />
information about strategic plans that should be kept out of the hands of competitors;<br />
and (2) decision-makers worry that employees who are aware of their<br />
status in succession plans may develop unrealistic expectations or may ‘‘hold<br />
themselves hostage.’’ To avoid these problems, decision-makers keep the<br />
SP&M process and its outcomes confidential.<br />
On the other hand, an open SP&M program is treated with candor. Work<br />
requirements, competencies, and success factors at all levels are identified and<br />
communicated. The SP&M process—and its possible outcomes—is described<br />
to all who ask. Individuals are told how they are regarded. However, decisionmakers<br />
do not promise high performers with high potential that they are guaranteed<br />
advancement; rather, they send the message that ‘‘you must continue<br />
to perform in an exemplary way in your current job and take active steps to<br />
prepare yourself for the future to benefit from it. While no promises will be<br />
made, preparing yourself for the future will usually help you qualify for advancement<br />
better than not preparing yourself.’’<br />
Amount of Individual Discretion<br />
How much say do individuals have in assessing their current job performance<br />
and their future advancement potential? The answer to that question has to<br />
do with the amount of individual discretion in a succession planning and<br />
management program. There was a time in U.S. business when it was assumed<br />
that everyone wanted to advance to higher levels of responsibility and that
What Is Succession Planning and Management?<br />
35<br />
everyone was willing to relocate geographically whenever asked to do so. Such<br />
assumptions are no longer safe to make: not everyone is willing to make the<br />
sacrifices that go with increased responsibility; not everyone is willing to sacrifice<br />
work-life balance; not everyone is willing to relocate due to the complexities<br />
of dual-career families and situations where elderly parents require care.<br />
Mandated succession planning and management ignores individual career<br />
goals. Decision-makers identify the best candidates for jobs, regardless of<br />
individual preferences. Whenever a vacancy occurs, internal candidates are<br />
approached first. While given right of refusal, they may also be pressured to<br />
accept a job change for the good of the organization. Verified succession planning<br />
and management appreciates the importance of the individual in SP&M.<br />
Decision-makers identify desirable candidates for each job and then verify<br />
their interest in it by conducting career planning interviews or discussions.<br />
When a vacancy occurs, internal candidates are approached, but decision-makers<br />
are already aware of individual preferences, career goals, and interests. No<br />
pressure is exerted on the individual; rather, decision-makers seek a balance<br />
in meeting organizational succession needs and individual career goals.<br />
Ensuring Leadership Continuity in Organizations<br />
There are two main ways to ensure leadership continuity and thereby fill critically<br />
important positions. These may be generally classified as traditional and<br />
alternative approaches. Each can have important implications for SP&M.<br />
Hence, each warrants brief review.<br />
Traditional Approaches<br />
In 1968, Haire noted that people can make only six types of job movements in<br />
any organization: in (entry), out (termination), up (promotion), down (demotion),<br />
across (lateral transfer), or progress in place (development in the current<br />
position). 34 Any one—or all—of these traditional approaches can, of<br />
course, be used as a means to meet succession needs for key positions.<br />
Moving people into an organization (entry) is associated with recruitment<br />
and selection. In short, ‘‘hiring off the street’’ is one way to find successors for<br />
key positions. However, people hired from outside represent a gamble. They<br />
have little stake in the organization’s status quo, though they may have valuable<br />
knowledge in which the organization is otherwise deficient. They may<br />
generate conflict trying to put new ideas into action. That conflict may be<br />
destructive or constructive. Top managers may be reluctant to hire more than<br />
a certain percentage of outsiders for key positions because they do represent<br />
a gamble. Their track records are difficult to verify, and their ability to work<br />
harmoniously in a new corporate culture may be difficult to assess. If they fail,<br />
outsiders may be difficult to terminate both because managers can be reluctant
36 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
to ‘‘fire’’ people and because wrongful discharge litigation is an issue of growing<br />
concern.<br />
Moving people out of an organization (termination) is associated with layoffs,<br />
downsizings, reductions in force, firings, and employee buyouts. It is generally<br />
viewed negatively, continuing to carry a social stigma for those ‘‘let go’’<br />
and to be a public relations concern for organizations that regularly terminate<br />
individuals with or without cause. Yet, if properly used, termination can be an<br />
effective tool for removing less-than-effective performers from their positions,<br />
thereby opening up opportunities for promising high-potential employees<br />
with proven track records.<br />
Moving people up in an organization (promotion) is associated with upward<br />
mobility, advancement, and increased responsibility. Succession planning<br />
and management has long been linked with this approach more than<br />
any other. Indeed, replacement charts—while increasingly outdated—remain<br />
tools of SP&M in many organizations. They usually imply an upward progression<br />
from within the organization—and often within the same division,<br />
department, or work unit. Career maps show the competency requirements<br />
necessary for advancement and are often substituted now for replacement<br />
charts. Job-posting programs can also be paired with replacement charting or<br />
career maps so as to communicate vacancies and provide a means of allowing<br />
movement across functions, departments, and locations.<br />
Promotion from within does have distinct advantages: it sustains (or improves)<br />
employee morale, and it smoothes transitions by ensuring that key<br />
positions are filled by those whose personalities, philosophies, and skills are<br />
already known to others in the organization. However, experts advise limiting<br />
the percentage of positions filled through internal promotion. One reason is<br />
that it tends to reinforce the existing culture. Another reason is that it can end<br />
up perpetuating the racial, sexual, and ethnic composition already present in<br />
the leadership ranks.<br />
There are other problems with strict promotion-from-within approaches<br />
to succession planning and management. First, exemplary job performance in<br />
one position is no guarantee of success in a higher-level position. Requirements<br />
at different organizational levels are not identical—and that is particularly<br />
true in management. Effective promotion from within requires planning<br />
and rarely occurs by luck.<br />
Moving people down in an organization (demotion), like terminating<br />
them, is commonly viewed negatively. Yet it, too, can be an effective source of<br />
leadership talent on some occasions. For instance, when an organizational<br />
unit is being disbanded, effective performers from that unit may fill vacancies<br />
in other parts of the organization. Individuals may even accept demotions voluntarily<br />
if they believe that such moves will increase their job security or improve<br />
their long-term career prospects.<br />
Moving people across an organization (lateral transfer) is becoming more
What Is Succession Planning and Management?<br />
37<br />
common in the wake of downsizing. (It is sometimes linked to what has come<br />
to be called inplacement. 35 ) That, too, can be a valuable means by which to<br />
cross-fertilize the organization, giving new perspectives to old functions or<br />
activities. Job rotations, either temporary or permanent moves from one position<br />
to others as a means of relieving ennui or building individual competencies,<br />
are a unique form of transfer that can also be used in succession planning<br />
and management. 36<br />
Finally, progress in place (development in the current position) represents<br />
a middle ground between lateral transfer and upward mobility. It has become<br />
more common as opportunities for advancement have diminished in the wake<br />
of fierce global competition. Progress in place is based on the central premise<br />
that no job—no matter how broad or complex—fully taps individual potential.<br />
As a result, individuals can be developed for the future while remaining where<br />
they are, doing what they have always done, and gradually shouldering new<br />
duties or assignments. Stagnation is thus avoided by ‘‘loading’’ the job horizontally<br />
or vertically. (Horizontal loading means adding job responsibilities<br />
similar to what the individual has already done; vertical loading means offering<br />
new job responsibilities that challenge the individual to learn more.)<br />
Related to progress in place is the notion of dual career ladders in which<br />
individuals may advance along two different career tracks: a management<br />
track (in which advancement is linked to increasing responsibility for people)<br />
and a technical track (in which advancement is linked to increasingly sophisticated<br />
responsibility within a given function or area of expertise). The organization<br />
may establish special rewards, incentives, and compensation programs to<br />
encourage advancement along dual career tracks.<br />
Alternative Approaches<br />
Experienced managers know that there is more than one way to fill a critical<br />
position. 37 Job movements, described in the previous section, represent a traditional<br />
approach, commonly associated with SP&M. Alternative approaches<br />
are probably being increasingly used as managers in cost-sensitive organizations<br />
struggle to meet SP&M challenges while finding themselves restricted in<br />
the external hiring and internal promoting that they may do.<br />
One alternative approach might be called organizational redesign. When a<br />
vacancy occurs in a key position, decision-makers do not automatically ‘‘move<br />
someone into that place’’; rather, they break up the work duties and reallocate<br />
them across the remaining key positions or people. The desired effect is to<br />
reduce headcount while holding results constant. It also develops the remaining<br />
key people by giving them exposure to a new function, activity, or responsibility.<br />
However, if rewards do not match the growing workload, exemplary<br />
performers who have been asked to do more may grow disenchanted. There
38 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
is also a limit to how much can be loaded on people before they are incapable<br />
of performing effectively.<br />
A second alternative approach is process redesign. Decision-makers do not<br />
automatically assume that a key position needs to be replaced when it becomes<br />
vacant; rather, they review that function from top to bottom, determining<br />
whether it is necessary at all—and if it can be done in new ways that require<br />
fewer people.<br />
A third alternative approach is outsourcing. Rather than assume that all<br />
key positions need to be performed internally, decision-makers periodically<br />
reassess whether activities can be more cost-effectively handled externally. If<br />
headcount can be reduced through outsourcing, the organization can decrease<br />
succession demands.<br />
A fourth alternative approach involves trading personnel temporarily with<br />
other organizations. This approach builds on the idea that organizations can<br />
temporarily trade resources for their mutual benefit. Excess capacity in one<br />
organization is thus tapped temporarily by others. An advantage of this approach<br />
is that high performers or high potentials who are not immediately<br />
needed by one organization can be pooled for use by others, who usually<br />
offset their salaries and benefits. A disadvantage is that lending organizations<br />
risk losing these talented workers completely if they are spirited away by those<br />
having greater need of their services and greater ability to reward and advance<br />
them.<br />
A fifth alternative approach involves establishing talent pools. Instead of<br />
identifying one likely successor for each critical position, the organization sets<br />
out to develop many people for many positions. That is accomplished by mandated<br />
job rotations so that high potentials gain exposure to many organizational<br />
areas and are capable of making multifaceted contributions. While that<br />
sounds fine in theory, there are practical difficulties with using this approach.<br />
One is that productivity can decline as new leaders play musical chairs and<br />
learn the ropes in new organizational settings.<br />
A sixth alternative approach is to establish two-in-the-box arrangements.<br />
Motorola has been known to use this approach. ‘‘Since most Motorola businesses<br />
are run by a general manager and an assistant general manager, the<br />
assistant slot is used to move executives from one business to another for a<br />
few years so they can gain a variety of experiences.’’ 38 A form of overstaffing<br />
that would not be appealing to some organizations, this approach permits<br />
individual development through job rotations while preserving leadership<br />
continuity. It is akin to forming an executive team in which traditional functional<br />
senior executives are replaced by a cohesive team that collectively makes<br />
operating decisions, effectively functioning in the place of a chief operating<br />
officer. 39<br />
A seventh alternative approach is to establish competitive skill inventories<br />
of high-potential workers outside the organization. Rather than develop organizational<br />
talent over time, an organization identifies predictable sources of
What Is Succession Planning and Management?<br />
39<br />
high-potential workers and recruits them on short notice as needed. A disadvantage<br />
of this approach is that it can engender counterattacks by organizations<br />
that have been ‘‘robbed’’ of talent.<br />
Of course, there are other alternative ways by which to meet successor<br />
needs in key positions. Here is a quick review of a few of them:<br />
▲ Temping. The organization makes it a practice to hire individuals from<br />
outside on a short-term basis to fill in during a search for a successor.<br />
The ‘‘temps’’ become candidates for consideration. If they do not work<br />
out, however, the arrangement can be severed on short notice.<br />
▲ Job Sharing. An experienced employee in a key position temporarily<br />
shares the job with another as a means of on-the-job training—or assessing<br />
how well the candidate can perform.<br />
▲ Part-Time Employment. Prospective candidates for key positions are<br />
brought in on a part-time basis. They are carefully assessed before employment<br />
offers are made.<br />
▲ Consulting. Prospective candidates for key positions are brought in as<br />
consultants on projects related to the position duties. Their performance<br />
is carefully assessed before employment offers are made.<br />
▲ Overtime. Prospective candidates from within the organization are<br />
asked to work in other capacities in addition to their current jobs. This<br />
represents overtime work. The employer then assesses how well the<br />
individuals can perform in the key positions, making allowances for the<br />
unusual pressure under which they are functioning.<br />
▲ Job Rotation. Prospective candidates for key positions are developed<br />
from within by rotating, for an extended time span, into another job or<br />
series of jobs in preparation for the future.<br />
▲ Retirees. The organization looks to individuals with proven track records<br />
to return to critical positions temporarily—or permanently. This<br />
is likely to be a key focus of interest in the future. 40<br />
The important point about SP&M is that numerous approaches may be<br />
used to satisfy immediate requirements. However, a continuing and systematic<br />
program is necessary to ensure that talent is being prepared inside the organization.<br />
As a starting point for describing what is needed to decision-makers in<br />
your organization, start with addressing the Frequently Asked Questions<br />
(FAQs) appearing in Appendix I at the end of this book.<br />
Summary<br />
This chapter opened with six dramatic vignettes to illustrate the importance of<br />
succession planning and management (SP&M), which was defined ‘‘as any effort<br />
designed to ensure the continued effective performance of an organiza-
40 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
tion, division, department, or work group by making provision for the<br />
development, replacement, and strategic application of key people over time.’’<br />
A succession planning and management program was defined as a ‘‘deliberate<br />
and systematic effort by an organization to ensure leadership continuity in key<br />
positions, retain and develop intellectual and knowledge capital for the future,<br />
and encourage individual advancement.’’ Succession planning and management<br />
is proactive and should not be confused with more limited-scope and<br />
reactive replacement planning, which is a form of risk management.<br />
Succession planning and management is important for several reasons: (1)<br />
the continued survival of the organization depends on having the right people<br />
in the right places at the right times; (2) as a result of recent economic restructuring<br />
efforts in organizations, there are simply fewer people available to advance<br />
to the top ranks from within; (3) succession planning and management<br />
is needed to encourage diversity and multiculturalism in organizations and to<br />
avoid ‘‘homosocial reproduction’’ by managers; and (4) succession forms the<br />
basis for communicating career paths, establishing development and training<br />
plans, establishing career paths and individual job moves, communicating upward<br />
and laterally, and creating a more comprehensive human resources planning<br />
system.<br />
Organizations sponsor systematic succession planning and management<br />
programs for various reasons. The three most important, based on my 2004<br />
survey, are:<br />
▲ To contribute to implementing the organization’s strategic business<br />
plans<br />
▲ To identify ‘‘replacement needs’’ as a means of targeting necessary training,<br />
employee education, and employee development<br />
▲ To increase the talent pool of promotable employees<br />
Approaches to succession planning and management may be distinguished<br />
by direction, timing, planning, scope, degree of dissemination, and amount of<br />
individual discretion. Succession needs may be met through traditional and<br />
alternative approaches. Succession planning and management should be<br />
linked to—and supportive of—strategic plans, human resource plans, human<br />
resource development plans, and other organizational planning activities.
C H A P T E R 2<br />
TRENDS INFLUENCING SUCCESSION<br />
PLANNING AND MANAGEMENT<br />
Succession planning and management (SP&M) must be carried out against<br />
the backdrop of increasingly dynamic organizations. 1 Those organizations are<br />
responding, either proactively or reactively, to changes occurring in their external<br />
environments. As Leibman explains, ‘‘today’s dynamic environment<br />
filled with global competition and business discontinuities defines the arena<br />
in which succession planning must flourish. To do so, a much more active<br />
orientation is required, one that is better characterized by succession management<br />
and its emphasis on ongoing and integrated processes.’’ 2 For Leibman,<br />
succession management is more active than succession planning and must be<br />
carried out in a way that is tied to organizational strategy and is responsive<br />
enough to deal with rapidly changing organizational settings. That is an accurate<br />
view. To be effective, SP&M programs must anticipate—and not just react<br />
to—the changes wrought by an increasingly dynamic business environment.<br />
Many trends drive the future workplace and workforce. Among them are<br />
the following 3 :<br />
1. Changing Technology<br />
2. Increasing Globalization<br />
3. Continuing Cost Containment<br />
4. Increasing Speed in Market Change<br />
5. The Growing Importance of Knowledge Capital<br />
6. An Increasing Rate and Magnitude of Change<br />
These trends demand a new role for managers. They also call for a new,<br />
more strategic role for HR practitioners. 4 Trends such as these frame the future<br />
of SP&M efforts, and effective SP&M programs are built to help organizations<br />
manage and even capitalize on the effects of these trends.<br />
This chapter examines key trends influencing SP&M. The chapter opens<br />
with an activity for you to consider on the drivers of change and trends. It<br />
then focuses on answering the question, ‘‘What trends are influencing SP&M?’’<br />
41
42 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
The chapter directs attention to ten key trends exerting special influence on<br />
SP&M:<br />
1. The Need for Speed<br />
2. A Seller’s Market for Skills<br />
3. Reduced Loyalty Among Employers and Workers<br />
4. The Importance of Intellectual Capital and Knowledge Management<br />
5. The Importance of Values and Competencies<br />
6. More Software to Support Succession<br />
7. The Growing Activism of the Board of Directors<br />
8. Growing Awareness of Similarities and Differences in Succession Issues<br />
Globally<br />
9. Growing Awareness of the Similarities and Differences of Succession<br />
Programs in Special Venues: Government, Nonprofit, Education, Small<br />
Business, and Family Business<br />
10. Managing a Special Issue: CEO Succession<br />
The chapter then offers conclusions about what these trends mean for SP&M.<br />
But first, take a moment to rate your organization on its handling of SP&M<br />
against the backdrop of the competitive environment. Complete the assessment<br />
questionnaire appearing in Exhibit 2-1. When you finish, score the results<br />
of your assessment. Then continue reading the chapter.<br />
The Ten Key Trends<br />
Trend 1: The Need for Speed<br />
Time has emerged as a key strategic resource. 5 If you doubt that, then consider<br />
how often the phrase ‘‘reduction in cycle time’’ is used in companies today.<br />
Also consider how fast the speed of processing time in computers is advancing.<br />
Slashing the time it takes to get results is seen as a goal in its own right. This<br />
includes:<br />
▲ Finding faster ways to transform basic research into applied research so<br />
as to create new products or services and thereby beat competitors to<br />
production or service delivery<br />
▲ Entering new markets faster<br />
▲ Reducing unnecessary or redundant steps in the production process<br />
through process improvement
Trends Influencing Succession Planning and Management<br />
43<br />
Exhibit 2-1. An Assessment Questionnaire: How Well Is Your Organization<br />
Managing the Consequences of Trends Influencing Succession Planning<br />
and Management?<br />
Directions: Use this questionnaire to structure your thinking about how well your<br />
organization is positioned to manage the consequences of key trends influencing<br />
SP&M. For each item listed in the left column below, rate how well you feel your<br />
organization is prepared to manage the consequences of the trends as they may<br />
influence SP&M.<br />
Use the following scale to rate your opinions:<br />
1 Not at all prepared to manage the consequences of the trend as it influences<br />
SP&M.<br />
2 Very unprepared to manage the consequences of the trend as it influences<br />
SP&M.<br />
3 Unprepared to manage the consequences of the trend as it influences<br />
SP&M.<br />
4 Somewhat prepared to manage the consequences of the trend as it influences<br />
SP&M.<br />
5 Prepared to manage the consequences of the trend as it influences SP&M.<br />
6 Well prepared to manage the consequences of the trend as it influences<br />
SP&M.<br />
7 Very well prepared to manage the consequences of the trend as it influences<br />
SP&M.<br />
If you wish, ask decision-makers in your organization to complete this assessment<br />
questionnaire individually. Then compile the results and feed the results back to the<br />
decision-makers so that they may see their collective views.<br />
The Questionnaire<br />
How Well Is Your Organization Positioned to<br />
Manage the Consequences of the Trend as It<br />
Influences SP&M?<br />
Not at<br />
Very Well<br />
All Prepared<br />
Prepared<br />
Trend 1 2 3 4 5 6 7<br />
1. The Need for Speed 1 2 3 4 5 6 7<br />
2. A Seller’s Market for Skills 1 2 3 4 5 6 7<br />
3. Reduced Loyalty Among<br />
Employers and Workers 1 2 3 4 5 6 7<br />
(continues)
44 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Exhibit 2-1. (continued)<br />
4. The Importance of Intellectual<br />
Capital and Knowledge<br />
Management 1 2 3 4 5 6 7<br />
5. The Key Importance of<br />
Values and Competencies 1 2 3 4 5 6 7<br />
Scoring<br />
Add up the totals<br />
of the columns above<br />
and place the sum in<br />
the box at right<br />
V<br />
Interpreting the Score<br />
If your score is lower than 19, then your organization is not well prepared to manage<br />
the consequences of the trends as they may influence SP&M.<br />
▲ Improving, through just-in-time inventory methods, the time match between<br />
the need for raw materials and their use in production so as to<br />
reduce inventory holding costs<br />
▲ Reducing the time it takes to fill an order or ship a product from producer<br />
to consumer<br />
Speed is only likely to become more important in the future. That sensitivity<br />
to speed is affecting human resources (HR) practices as well. Many companies<br />
keep statistics to see how long it takes to do the following 6 :<br />
▲ Justify a position.<br />
▲ Recruit for and fill a vacancy.<br />
▲ Find talent to meet immediate needs or synchronize efforts.<br />
▲ Train people.<br />
In a more stable era, it might have been acceptable to permit a long lead<br />
time between the justification and filling of a position, or the selection of a<br />
qualified person and the realization of full productivity from that worker following<br />
training. But stable times are gone. Time is a resource easily wasted,<br />
and people must be found and oriented so that they can become productive<br />
as quickly as possible.<br />
Trend2:ASeller’sMarketforSkills<br />
Employers in the United States, as in many other parts of the world, have<br />
traditionally taken workers for granted. Many managers still assume that, if
Trends Influencing Succession Planning and Management<br />
45<br />
their organizations will only pay enough, they can always find the people they<br />
need to fill any position. But that assumption is not always valid anymore.<br />
There are several reasons why.<br />
First, the U.S. population is aging. 7 Fewer workers are entering at the bottom<br />
of organizational pyramids because there are fewer workers of traditional<br />
entry-level age. Those new workers have a work ethic and values different from<br />
those of previous generations. Many prize a balance of work and personal life<br />
that does not match the frenetic pace of many organizations today, where<br />
number of work hours for the average manager are on the rise. 8<br />
Second, more people are reaching traditional retirement ages. Some authorities<br />
contend that this will lead to a leadership shortage as senior managers,<br />
traditionally the oldest age group, take advantage of generous retirement<br />
plans. 9 Other authorities, however, caution against assuming that people will<br />
retire at traditional ages in the future, since retirement plans and other benefits<br />
are less secure than they once were. 10<br />
Third, until recently the U.S. economy sustained a broad expansion for the<br />
longest period in history. Many groups have benefited from this expansion.<br />
While there may be evidence that the rich are getting richer and the poor are<br />
getting poorer, 11 it is also true that (at least at the time this book goes to press)<br />
virtually anyone in America who wants a job can find one somewhere. This<br />
means that workers can afford to be more selective about where they work,<br />
which creates a seller’s market for skills.<br />
In response, many U.S. organizations have instituted retention programs<br />
to hold down turnover. 12 That is ironic, considering that many organizations<br />
in the 1990s implemented staff reduction plans through downsizings, layoffs,<br />
employee buyouts, and early retirement programs in order to slash payroll<br />
and benefit costs. But, while downsizings continue in the wake of rapid market<br />
changes and corporate mergers, acquisitions, and takeovers, many decision-makers<br />
in organizations are now looking for ways to attract and retain<br />
talent. That is particularly true in information technology jobs, where a muchpublicized<br />
labor shortage is thought to be a driver for future mergers and<br />
acquisitions.<br />
The change in attitude has spawned interest in ways to give people hope<br />
for the future. An SP&M program is one such way, of course. A reinvented<br />
career planning and development program is another, related way.<br />
Trend 3: Reduced Loyalty Among Employers and Workers<br />
There was a time when employees believed that they would get a job with one<br />
company and stay with that company until retirement. A stable employment<br />
record was considered an advantage during job interviews. Likewise, employers<br />
often assumed that, when they extended a job offer, they were establishing<br />
a long-term relationship with the worker. Even poor performers were toler-
46 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
ated, and sometimes moved out of the way and into harmless positions to<br />
preserve workers’ feelings of trust and security with their employers.<br />
This, of course, is no longer the case. One result of the downsizing of the<br />
1990s was that employers changed the employment contract. 13 As competitive<br />
conditions became more fierce, organizational conditions became less stable.<br />
No longer were employers making a long-term commitment to their employees.<br />
A legacy of this change is that employees have become more interested in<br />
short-term gains, especially in salaries, titles, development opportunities, and<br />
benefits. They want immediate rewards for good performance, since they distrust<br />
their employers’ abilities to reward them in the future for hard work<br />
performed in the present. 14 They have changed from showing a tolerance for<br />
delayed gratification to demanding immediate gratification. This change in the<br />
employment contract has profound implications for traditional SP&M practices.<br />
Employees can no longer trust their employers to make good on promises<br />
of future advancement. And, given that attitude, employers can no longer<br />
count on high potentials or exemplary performers patiently performing for<br />
long periods before receiving rewards, advancement, or professional development.<br />
Speed is now as important in managing succession issues as it is in managing<br />
other aspects of organizational practice. Managers must manage against a<br />
backdrop with the possibility of losing valuable talent if they do not identify it<br />
quickly and offer prompt rewards and development opportunities. 15<br />
Trend 4: The Importance of Intellectual Capital and Knowledge<br />
Management<br />
Intellectual capital can be understood, at least in one sense, as the collective<br />
economic value of an organization’s workforce. 16 The effective use of intellectual<br />
capital is knowledge management. 17 It is important to emphasize that, as<br />
the speed of decision making increases in organizational environments and<br />
operations, intellectual capital increases in value because it is essential for<br />
customers to deal with workers who know how to serve them quickly and<br />
effectively. This demands improved knowledge management of the workforce.<br />
While land, capital, and information can be readily obtained from other<br />
sources—and, on occasion, leased, outsourced, or purchased—the organization’s<br />
workforce represents a key asset. Without people who know what the<br />
organization does to serve its customers and how it does that, no organization<br />
could continue to function. In one example I like to use with my students, I<br />
ask them this question: What would a university be without its faculty, administrators,<br />
staff, and students? The answer is that it would be nothing more than<br />
assets ready for liquidation—land, buildings, equipment, and capital. Without<br />
the people, there would be no way to achieve the mission of the university by<br />
teaching, research, and service.
Trends Influencing Succession Planning and Management<br />
47<br />
The same principle applies to business organizations. While traditional<br />
managers may view people as a cost of doing business, thought leaders realize<br />
that people represent the only asset that really matters in a competitive environment.<br />
People dream up new products and services. People make the leap<br />
from the results of basic research to the commercialization of applied research.<br />
People come up with technological advancements and use those advancements<br />
to achieve improved productivity and quality. People serve the customers,<br />
make the products, ship them to consumers, bill them, deposit the<br />
proceeds, and manage the organization’s resources. Without people, the competitive<br />
game is lost. That is a lesson that is, unfortunately, too easy to forget<br />
at a time when many people are awed by rapid technological advancement.<br />
Of course, those impressive technological advancements are pointless unless<br />
people make use of them.<br />
The implications of intellectual capital and knowledge management are<br />
important for SP&M. In a sense, succession planning and management is a<br />
means to an end. It is a tool of knowledge management, a means of ensuring<br />
that intellectual capital is properly serviced, retained, cultivated, and protected.<br />
Trend 5: The Importance of Values and Competencies<br />
People in organizations have high expectations of their leaders. These expectations<br />
are unlikely to diminish in the future. People want leaders who can get<br />
results and can, at the same time, model appropriate ethics. For these reasons,<br />
values and competencies have emerged as crucial to success in organizations.<br />
As a later chapter will define them, values can be understood to mean<br />
deeply held beliefs. In the wake of high-profile scandals in the U.S. government,<br />
in other governments such as those of Japan and China, and in many<br />
businesses, values have emerged as a key issue of importance in organizational<br />
settings. Many multinational companies, for instance, have tried to address<br />
cultural differences by establishing core values honored internationally under<br />
one corporate umbrella. 18<br />
Competencies, while having different definitions, 19 have also emerged as<br />
key to management decision making, human resource practice, 20 and SP&M<br />
programs. Values represent a moral dimension to the way leadership is exercised<br />
and work is performed. 21 Competencies can represent the distinguishing<br />
features between high performers and average or below-average performers.<br />
More flexible than work activities or tasks, competency models are the glue<br />
that holds together a succession planning effort. The use of competency models<br />
is a distinguishing characteristic between traditional and cutting-edge<br />
SP&M programs. As work becomes more dynamic and divorced from the traditional<br />
‘‘boxes’’ found on organization charts, there must still be a way to describe<br />
what performance is expected. Competency models have the advantage<br />
of providing that flexibility.
48 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Trend 6: More Software to Support Succession<br />
There is more software available to support SP&M, though it sometimes masquerades<br />
under such alternative names as talent management, talent development,<br />
orhuman capital software. That is both a blessing and a curse. It is a<br />
blessing because, when well formulated and implemented, software permits<br />
individuals and groups that are dispersed geographically to participate. Software<br />
can facilitate decision making on competency identification, values<br />
clarification, 360-degree assessment, individual development planning, identification<br />
of developmental resources to help build competencies (and thereby<br />
close developmental gaps), track individual progress (and thus encourage accountability),<br />
and even measure individuals’ progress and the support provided<br />
by immediate supervisors.<br />
But it can be a curse because some people believe that, when they buy a<br />
technology solution, they are also buying the solutions to their succession<br />
problems. They think that the software will give them ready-made, off-theshelf,<br />
one-size-fits-all competency models, 360-degree assessments, individual<br />
development plans, tracking systems, and developmental methods. Of course,<br />
that is not true. Technology is like an empty glass. HR practitioners and senior<br />
managers cannot avoid the responsibility of filling the glass with corporateculture-specific<br />
competencies, overseeing individual progress, providing realtime<br />
mentoring and coaching, and offering much more than is embedded in<br />
the technology. In short, technology can ease the work, but it will not remove<br />
it. (Chapter 12 of this book describes unique issues associated with the application<br />
of online technology to SP&M.)<br />
Trend7:TheGrowingActivismoftheBoardofDirectors<br />
Boards of directors are beginning to take a more active role in SP&M. The<br />
evidence clearly points in that direction. One reason has been the Sarbanes-<br />
Oxley Act of 2002. (See Exhibit 2-2.) A key effect of that act is to increase<br />
board accountability in business operations. And, of course, finding qualified<br />
successors for CEOs on down is an important issue that corporate boards must<br />
perennially address. 22<br />
Trend 8: Growing Awareness of Similarities and Differences in<br />
Succession Issues Globally<br />
One size does not fit all—and that is as true of succession planning as it is of<br />
anything else. Unfortunately, it is a lesson that some multinational corporations<br />
(MNCs) have never learned. An all-too-common scenario is that the corporate<br />
headquarters in Europe, the United States, or Japan will establish<br />
succession planning guidelines and then roll them out worldwide, forgetting
Trends Influencing Succession Planning and Management<br />
49<br />
Exhibit 2-2. The Sarbanes-Oxley Act of 2002<br />
The Sarbanes-Oxley Act of 2002 has swept the corporate world, leading to widespread<br />
change. 1 Introduced in the wake of the spate of scandals that began with<br />
Enron, the Sarbanes-Oxley Act does have an impact on succession issues. It has<br />
prompted corporate boards of directors to take a more active role in succession<br />
issues. It has also prohibited practices that were previously regarded as retention<br />
strategies for key executives, such as permitting personal loans to executives or<br />
allowing CEOs to remain in the room as corporate boards deliberate financial packages.<br />
2 Sarbanes-Oxley has also put real teeth in corporate codes of conduct and<br />
strengthened ethics programs in corporate settings. One indicator: ‘‘the ethics officer<br />
association, a Waltham, Mass.–based organization for managers of ‘ethics,<br />
compliance and business conduct programs,’ has seen membership jump more<br />
than 25 percent since last year.’’ 3<br />
Notes<br />
1. Steven C. Hall, ‘‘Sarbanes Oxley Act of 2002,’’ Journal of Financial Service<br />
Professionals 57:5 (2003), 14.<br />
2. Dale Buss, ‘‘Corporate Compasses,’’ HR Magazine 49:6 (2004), 127–128,<br />
130, 132; Robert J. Grossman, ‘‘HR on the Board,’’ HR Magazine 49:6 (2004),<br />
56–63.<br />
3. Buss, ‘‘Corporate Compasses,’’ p. 128.<br />
that the world is a big place and national cultural differences do play a role in<br />
effective succession planning practices. The result is that, whatever the approach,<br />
it is only partly effective. An English-language-only literature search<br />
uncovered articles about SP&M in Europe, 23 the United States, 24 Asia, 25 the<br />
Middle East, 26 and New Zealand. 27 As Hickey notes in writing of SP&M in<br />
China, ‘‘a continued negligence of a systemic succession plan is seemingly<br />
retarding the growth and career development of domestic employees to localize<br />
the organization.’’ 28 The same could, unfortunately, be said of many other<br />
locales around the world.<br />
What are some of the problems that a global rollout may uncover? Here is<br />
a list of some typical problems and their causes:<br />
▲ U.S. firms will generally prize individualists who can claim credit for<br />
what they have done on their own. That is not true in other cultures, where a<br />
willingness to ‘‘stick one’s head above the crowd may mean it is cut off.’’ In<br />
short, allowances may have to be made for cultural differences in which individual<br />
efforts are prized in those cultures where individualism is prized, while<br />
an individual’s willingness and skill to influence groups may have to be identified<br />
and rewarded in more collectivistic cultures where team efforts are prized.
50 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
▲ Some European firms—and some firms in developing nations—will<br />
prize ‘‘family heritage.’’ Ultimately, coming from the European tradition of<br />
aristocracy, this principle means that ‘‘not all people are created equal.’’ Some<br />
people, as George Orwell once noted in Animal Farm, are ‘‘more equal than<br />
others’’ by virtue of birth family, socioeconomic status, schools attended, and<br />
social networks developed from school and family connections. In short, it<br />
means that one’s family may mean that one is destined to be a senior executive<br />
no matter what corporate leaders in other nations may want because that is<br />
just the way things are done locally.<br />
If a universal approach will not work globally, then what approach will<br />
work? The answer is that there is no simple answer. Goals may be established<br />
at corporate headquarters. But, if the approach is to be effective, corporate<br />
leaders should launch facilitated sessions that bring together regional leaders<br />
to have input on the goals, hear about best practices in Western nations (which<br />
may have the most advanced approaches), and (most importantly) discover<br />
what results are to be achieved by those practices. Then the regional leaders<br />
should engage in facilitated discussions where they can ‘‘invent’’ local approaches<br />
that will ‘‘work’’ in their home cultures, and will comply with the<br />
employment laws of each nation.<br />
It is true that such an approach takes time, resources, patience, and hard<br />
work. But in the long run, that approach has the advantage of leading to<br />
‘‘global goals’’ but using ‘‘local approaches to achieve those goals.’’ It will<br />
work.<br />
The alternative is to do as many companies do and just ‘‘roll out something’’<br />
from corporate headquarters. Local people will shake their heads in<br />
wonderment, amazed that global corporate leaders know so little about the<br />
broad differences in local cultures, local realities, and even local labor laws. It<br />
just undermines the credibility of corporate leaders. As globalization exerts<br />
increasing influence, these ‘‘one size fits all’’ approaches will be increasingly<br />
out of step with good business practice. That is especially true when rapidly<br />
advancing technology makes it possible to have videoconferenced and realtime<br />
online discussions cross-culturally to facilitate ideas and approaches.<br />
Trend 9: Growing Awareness of Similarities and Differences of<br />
Succession Programs in Special Venues: Government, Nonprofit,<br />
Education, and Small or Family Business<br />
Just as one size of SP&M program may not fit all internationally, one approach<br />
to SP&M will not work in all venues. While there are many similarities in effective<br />
SP&M programs across business, government, and nonprofit sectors, there<br />
are some important differences as well. The same is true in settings such as<br />
educational institutions, small business, and family business.
Trends Influencing Succession Planning and Management<br />
51<br />
Government<br />
There are two key differences in succession planning programs between business<br />
and in governmental settings. (And it is worth pointing out that governmental<br />
entities may themselves differ across international, federal, state,<br />
municipal, county, and other governmental bodies.)<br />
One difference is that some governmental entities have civil service systems<br />
that prohibit (by law) the naming of individuals to fill positions without<br />
competitive job searches. In some jurisdictions, all jobs must be posted. Individuals<br />
are then ranked according to their qualifications compared to the requirements<br />
listed on job descriptions. That approach means, in practical<br />
terms, that a government entity can commit to develop anyone who wishes to<br />
be developed—a method sometimes called a talent-pool approach. But identifying<br />
individual successors in advance may not be possible.<br />
A second difference has to do with who may be regarded as the key customers<br />
of the effort. In business, the CEO plays the single most important role<br />
as customer. But in some governmental entities, the agency director is a political<br />
appointee who carries out the will of an elected official. In practical terms,<br />
that means that the most important owners of the SP&M process will be those<br />
government civil servants who do not change with the winds of every political<br />
election. They possess the collective institutional wisdom of the organization<br />
in their heads, and they must be appealed to on the grounds of a legacy if a<br />
government-agency SP&M program is to work. In many cases, government<br />
succession programs bear different titles and are called workforce planning or<br />
human capital management initiatives. 29<br />
Nonprofit<br />
Nonprofit entities share characteristics with business and government. For that<br />
reason, an effective SP&M program in a nonprofit organization will most likely<br />
be a hybrid of what works in the private and public sectors. The senior-most<br />
leader must back the effort if it is to succeed, and (in that respect) the nonprofit<br />
SP&M program is like the private sector. But dedicated leaders who have<br />
made their careers in the organization, and are committed to its worthwhile<br />
mission, must also back the effort. And in that respect, the SP&M program in<br />
a nonprofit organization is akin to that of a governmental entity.<br />
Education<br />
Educational institutions vary widely in type, just as governmental entities do.<br />
One size SP&M program will not fit all. What works in a local school system<br />
may not work at a world-famous research university. 30 But it is clear that large<br />
universities are unique for the simple reason that many people must move to<br />
other higher educational institutions if they are to be promoted from department<br />
head to dean, dean to provost or chancellor, or chancellor or provost to
52 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
president. That makes it difficult for one institution to justify expenditures on<br />
identifying and grooming talent for the future, since the beneficiaries of such<br />
efforts would most likely be other institutions. (In a school district, on the<br />
other hand, it may be possible to groom people to become principals because<br />
many such positions may be available.) Having said this, however, some<br />
higher-educational institutions have committed to leadership development<br />
programs to groom talent, and it is likely to be seen more in the future, for the<br />
simple reason that so many college professors and university administrators<br />
are at, or near, retirement age.<br />
Small or Family Business<br />
Succession planning in family businesses and succession planning in small<br />
businesses are specialized topics. Much has actually been written about<br />
them. 31 It should be noted that not all family businesses are small businesses<br />
and not all small businesses are family businesses. Some large, well-known<br />
companies like Ford were originally family businesses. In Europe or Asia, many<br />
large companies began—and some still are—essentially family dynasties. That<br />
is also true in some companies in the United States. And small businesses may<br />
be initiated by individuals without families or in partnerships of otherwise<br />
talented but unrelated entrepreneurs.<br />
Family businesses exert an enormously powerful influence on the U.S.<br />
economy. Consider the following 32 :<br />
It has been estimated that family businesses<br />
generate approximately nine out of 10 new<br />
jobs. But despite the significant role they play<br />
in supporting the nation’s economy, only<br />
about one in three survives to the second<br />
generation. The estimate of successful transfers<br />
to the third generation ranges from only<br />
10 to 20%.<br />
Family businesses represent a special succession challenge for the simple<br />
reason that many factors come into play. A founding entrepreneur, who is<br />
usually a parent and spouse, establishes a business. But what happens when<br />
he or she passes from the scene? Who carries on the legacy? In some cultures—<br />
and even in some parts of the United States—the principle of primogeniture<br />
is still very much apparent. Primogeniture is the view that the eldest son<br />
should be the primary inheritor. Based on the way that aristocratic titles have<br />
been passed down historically, it poses special problems in family succession,<br />
for the simple reason that the eldest son of a founding entrepreneur may (or<br />
may not) be the best equipped—by skills, vision, or motivation—to run the<br />
business.
Trends Influencing Succession Planning and Management<br />
53<br />
Family succession has several issues associated with it. One issue centers<br />
on management. A second issue centers on tax and inheritance issues. A third<br />
issue centers on legal issues. A fourth issue centers on what might be called<br />
family psychology. So, the management issue has to do with answering this<br />
question: ‘‘Who is best equipped to run the business when the founder passes<br />
from the scene?’’ While founders may feel inclined to leave the business to a<br />
spouse or to an eldest son, that person may (in fact) not be the best choice.<br />
The real issue has to do with a conflict between obligation to family and<br />
obligation to the business. Savvy founders will not necessarily let the obligation<br />
to the family prevail. If they do, they may destroy the business. What<br />
happens if, upon the founding entrepreneur’s sudden death or disability, the<br />
spouse or eldest child is ill-equipped to manage the business? The answer is<br />
likely to be bankruptcy or a sell-off. That may not be best for the business, the<br />
employees, or the communities in which that business functions.<br />
The second and third issues have to do with accounting and legal issues.<br />
Should the business be handed over before the founder’s demise, in which<br />
case it is subject to gift tax, or should the handoff occur after the founder’s<br />
demise, in which case it is subject to inheritance tax? Those questions are best<br />
addressed by competent financial and tax advisors. At the same time, if the<br />
business is handed over, it must be done legally. That requires competent legal<br />
advice to write a will that cannot be easily ‘‘broken’’ or a handoff agreement<br />
that makes the founder’s relationship to the business clear.<br />
The fourth and final issue has to do with family psychology. If the founder<br />
decides to hand over a controlling share of the business to one child in preference<br />
to others, for instance, then the reasons for that should be clear before<br />
his or her demise and the issue of financial fairness and equity addressed at<br />
that time. If the founder decides to hand over a controlling share of the business<br />
to a child and ignore the living spouse’s claim on the assets, that is also a<br />
problem. The point to be made here is that conflicts should be worked<br />
through while all parties are alive. At times that may require the help of a<br />
skilled family psychologist. To ignore the problem is to beg trouble—and perhaps<br />
beg the dissolution of the business upon the founder’s death or disability<br />
as family members squabble bitterly and ceaselessly over money.<br />
Trend 10: Managing a Special Issue: CEO Succession<br />
CEO succession has emerged as a special theme and research topic within the<br />
succession literature. 33 In that respect it is like other unique succession issues,<br />
such as the impact of cultural differences in making succession decisions,<br />
small business succession, and family business succession. The special interest<br />
in CEO succession should come as no big surprise. It has been a prominent<br />
topic for research, discussion, and investor interest. In fact, it has been a focus<br />
of attention in much the same way that succession to the throne has preoccu-
54 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
pied citizens in those nations where a monarch is the titular head of state. That<br />
analogy between monarch in a nation and CEO of a company is particularly<br />
apt when thinking about the successors of founding entrepreneurs in small<br />
businesses, where a CEO’s unexpected and sudden loss can have particularly<br />
devastating effects on the business. 34<br />
CEO succession has also become a particular center point for concern recently<br />
as CEO turnover globally has increased. 35 The findings of a study of CEO<br />
turnover, 36 reported in The Financial Executive, revealed that:<br />
▲ Involuntary CEO successions increased by more than 70 percent from<br />
2001 to 2002.<br />
▲ Of all CEO departures globally in 2002, 39 percent were forced—and<br />
that compared to 35 percent in 2001.<br />
▲ CEO turnover increased 192 percent in Europe and 140 percent in the<br />
Asia/Pacific region but only 2 percent in North America since 1995.<br />
▲ The Asia/Pacific region accounted for the largest change (19 percent),<br />
nearly 1 in 5 CEO departures.<br />
▲ North America accounted for only 48 percent of all successions worldwide<br />
in 2002 but accounted for a significantly higher 64 percent in<br />
2001.<br />
▲ Corporate boards have toughened their stance on CEO performance,<br />
since the board dismissed CEOs in 2002 when shareholder returns were<br />
only 6.2 percent below median regionally adjusted averages but at 11.9<br />
percent below median regionally adjusted averages in 2001.<br />
One important conclusion that can be drawn from these results is that<br />
organizations must pay more attention to ways to select CEOs and assimilate<br />
them. 37 Indeed, CEO succession is likely to continue to be a focus of attention.<br />
Most experts predict that the pace and magnitude of change in the world will<br />
continue to increase. As that happens, corporate boards are likely to be more<br />
demanding—and less forgiving—of CEO performance. That, in turn, will probably<br />
continue the trend of dropping job tenure for CEOs.<br />
What Does All This Mean for Succession Planning and<br />
Management?<br />
What will these trends mean for succession planning and management? The<br />
answer to that question is that, to be effective in the future, succession planning<br />
and management must be based on sensitivity to the need for speed, 38<br />
must align organizational needs with individual needs in order to be responsive<br />
to a seller’s market for skills, must emphasize a present orientation that<br />
will work in business settings where neither individuals nor organizations possess<br />
long-term loyalty, must recognize and cultivate the critical importance in
Trends Influencing Succession Planning and Management<br />
55<br />
competitive success of the organization’s intellectual capital, must rely on (but<br />
not be led by) technology, and must be sensitive to unique needs by culture,<br />
industry or economic sector, and level on the chain of command.<br />
Summary<br />
As noted at the opening of this chapter, succession planning and management<br />
must be carried out against the backdrop of increasingly dynamic organizations.<br />
This chapter examined ten key trends exerting special influence on succession<br />
planning and management. The chapter then offered conclusions<br />
about what these trends mean for succession planning and management.<br />
The next chapter makes the case for a newer approach to succession planning<br />
and management, one that is responsive to—and helps organizations be<br />
more proactive to—new competitive realities.
C H A P T E R 3<br />
MOVING TO A<br />
STATE-OF-THE-ART APPROACH<br />
What characteristics do state-of-the-art succession planning and management<br />
(SP&M) programs share in common? Read the cases appearing in Appendix II<br />
and then consider the summary of best-practice characteristics described<br />
below. While the cases do not necessarily describe every best practice, they are<br />
helpful in seeing how succession planning and management is handled among<br />
various organizations, in various industries.<br />
Characteristics of Effective Programs<br />
What characteristics of SP&M programs have most contributed to their effectiveness?<br />
Spend a moment to brainstorm the answer to that question. Then<br />
compare your answer to that question with the list of characteristics appearing<br />
below. (The list is not necessarily complete and is not meant to be arranged in<br />
order of importance.)<br />
▲ Characteristic 1: Top Management Participation and Support. Top<br />
management participation and support must be strongly evident. Their personal<br />
involvement—and even that of the corporate board—should motivate<br />
participants and ensure that other members of the management team devote<br />
time and effort to the succession planning program. Without the CEO’s personal<br />
attention, SP&M will probably receive far less attention than it presently<br />
does in these companies.<br />
▲ Characteristic 2: Needs-Driven with External Benchmarking. Some effort<br />
should be made to compare best practices in other organizations to the<br />
organization where leaders feel the need to act on succession issues.<br />
▲ Characteristic 3: Focused Attention. Organizational leaders should not<br />
allow succession planning to occur casually on its own. A systematic effort is<br />
focused on accelerating the development of individuals with verified advancement<br />
potential. It is worth emphasizing that it is not appropriate to assume<br />
that successful performance at one level guarantees, or is even an indicator of,<br />
success at higher levels of responsibility.<br />
56
Moving to a State-of-the-Art Approach<br />
57<br />
▲ Characteristic 4: Dedicated Responsibility. If a goal deserves attention,<br />
someone must be held responsible for achieving it and accountable for the<br />
consequences of it. That is as true of SP&M as it is of anything else.<br />
▲ Characteristic 5: Succession Planning and Management Extends to All<br />
Levels. SP&M should extend to all organizational levels. Note that the greatest<br />
emphasis is placed in some organizations at the lowest management levels,<br />
where the most positions and people exist. In the other cases, attention is<br />
devoted to levels where business needs (or risks of loss due to retirement) are<br />
greatest.<br />
▲ Characteristic 6: A Systematic Approach. In most organizations, continuing<br />
processes should be put in place to focus attention on succession planning.<br />
▲ Characteristic 7: A Comparison of Present Performance and Future Potential.<br />
Management succession should not be a function of personal favoritism,<br />
seniority, or even demonstrated track record. Instead, the organization<br />
should possess some means by which to compare present job performance<br />
and future potential. The organization should identify individual developmental<br />
needs for top-level talent.<br />
▲ Characteristic 8: Clarification of High-Level Replacement Needs. Organizational<br />
leaders should make the effort to determine the retirement plans of<br />
key officers. (In this book the term key job incumbent refers to an individual<br />
presently occupying a key position.) In that way, the organization is better able<br />
to identify developmental time spans for specific key positions.<br />
▲ Characteristic 9: An Obligation to Identify and Prepare Successors.<br />
Each executive should take responsibility, and be held accountable, for identifying<br />
and preparing successors.<br />
▲ Characteristic 10: Specific Developmental Programs Established and<br />
Conducted. Individuals thought to have high potential should participate in<br />
planned developmental programs to prepare them for the future, without necessarily<br />
being promised anything. Programs of this kind are often used in large<br />
corporations and may extend over many years. 1 Such programs may be viewed<br />
in three stages, which are based on the level of participants’ experience with<br />
the organization. In stage 1, there is a relatively large pool of prospective high<br />
potentials. They range from little experience through eight years with the organization.<br />
They are taught general management skills. Only 6 percent of those<br />
in stage 1 make it to stage 2, where they participate in tailor-made developmental<br />
experiences, intensive on-the-job development, and specialized<br />
courses, and they occupy important positions. A smaller percentage of those<br />
in stage 2 progress to stage 3, where they occupy important positions while<br />
they are carefully groomed for more senior positions.<br />
▲ Characteristic 11: High Potentials Work While Developing. The organization<br />
should not emphasize classroom or online training or off-the-job development<br />
to the exclusion of action learning or learning from experience. 2 For
58 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
this reason, high-potential employees are expected to produce while participating<br />
in the developmental program.<br />
▲ Characteristic 12: Developmental Programs Establish Familiarity with<br />
Who, What, When, Where, Why, and How. Large companies are so large that<br />
developmental experiences are, in part, established to familiarize future leaders<br />
with the organization’s environment. That is a key emphasis of some<br />
developmental programs. As a result, participants become much more knowledgeable<br />
about the corporate culture—who does what, when they do it, where<br />
business-related activities are performed, why they are worth doing, and how<br />
they are accomplished. In this way, the internal development program emphasizes<br />
knowledge, skills, and abilities unique to the organization and essential<br />
to success in performing at higher organizational levels.<br />
▲ Characteristic 13: Developmental Experiences Encourage Critical<br />
Questioning. Top managers who address high-potential employees find that<br />
they are occasionally confronted with critical questions about ‘‘the way we<br />
have always done it.’’ Critical questioning encourages creative thinking by top<br />
managers, as well as by high-potential employees.<br />
▲ Characteristic 14: Succession Planning Emphasizes Qualities Necessary<br />
to Surpass Movement to the Next Higher-Level Job. Exemplary SP&M programs<br />
emphasize more than merely preparing individuals to move from one<br />
‘‘box’’ on the organization chart to the next higher-level ‘‘box.’’ Instead, they<br />
emphasize the building of competencies leading to advancement beyond the<br />
next job. They are, thus, long term and strategic in scope and tend to build<br />
competencies in line with company business objectives and values.<br />
▲ Characteristic 15: Formal Mentoring Emphasized. Mentoring and<br />
coaching have been the subject of growing attention in recent years as management<br />
writers have recognized that individual development is more heavily influenced<br />
by the on-the-job work environment than by off-the-job training,<br />
education, or development experiences. 3 (Indeed, as much as 90 percent of<br />
an individual’s development occurs on the job. 4 ) A mentor or coach provides<br />
advice about dealing with challenges presented by the work environment, including<br />
interpersonal problems and political issues. ‘‘Mentoring occurs when<br />
a talented junior person forms an attachment to a sensitive and intuitive senior<br />
person who understands and has the ability to communicate with the individual.’’<br />
5 Mentors are teachers. They are not in positions of authority over their<br />
protégés or mentees. Nor do they necessarily serve as special advocates and<br />
cheerleaders for their protégés, as sponsors do. Mentors are typically chosen<br />
by the protégé or mentee; hence, most mentoring occurs informally. However,<br />
some organizations sponsor formal mentoring programs in which an effort<br />
is made to match promising junior employees with more experienced, highperforming<br />
senior employees.
Moving to a State-of-the-Art Approach<br />
59<br />
Other Characteristics<br />
On your list, you may have identified other characteristics of an effective SP&M<br />
program. In reality, of course, there are no ‘‘right’’ or ‘‘wrong’’ characteristics.<br />
Indeed, there isn’t a foolproof formula for success. But there are certain essentials<br />
to a good succession process 6 :<br />
▲ A Systematic (rather than anecdotal) Way of Identifying Candidates<br />
▲ Cross-Divisional Sharing of People and Information<br />
▲ Leadership That Rewards Managers for Promoting (rather than holding<br />
on to) Their Best Employees<br />
▲ Career Paths That Move Not Just Up a Specialized Ladder but Across the<br />
Company<br />
▲ Frequent Opportunities for Employees to Accept New Challenges<br />
▲ Recognition That Employees Have a Stake in the Company and Share<br />
Its Successes<br />
In my survey of succession planning practices, I asked about the characteristics<br />
of effective SP&M programs. The survey results are presented in Exhibit<br />
3-1. I have used those results to create a questionnaire, shown in Exhibit 3-2,<br />
which you can use to assess issues for inclusion in the SP&M program in your<br />
organization.<br />
The Life Cycle of Succession Planning and Management<br />
Programs: Five Generations<br />
In my consulting practice, I have discovered that many decision-makers in<br />
organizations that possess no SP&M program would like to leap in a single<br />
bound from no program to a state-of-the-art program. That is rarely possible<br />
or realistic. It makes about as much sense as trying to accelerate an automobile<br />
from a standing stop to 100 miles per hour in one second.<br />
It makes much more sense to think in terms of a phased-in roll-out. The<br />
basis for this roll-out approach is my view that organizations go through a life<br />
cycle of development as they implement SP&M programs. At each generation,<br />
they gain sophistication about what to do, how to do it, and why it is worth<br />
doing.<br />
The first generation of SP&M is a simple replacement plan for the CEO.<br />
This is easiest to sell if the organization does not have such a plan, since most<br />
CEOs realize what might happen to their organizations if they are suddenly<br />
incapacitated. (See Exhibit 3-3.) The target of the SP&M program in the first<br />
generation is the CEO only, and involving the CEO ensures that he or she<br />
(text continues on page 66)
Exhibit 3-1. Characteristics of Effective Succession Planning and Management Programs<br />
A<br />
B<br />
C<br />
D<br />
E<br />
Characteristics of Effective Succession<br />
Planning Programs<br />
How Your Organization:<br />
Tied the succession planning program<br />
to the organizational strategic<br />
plans?<br />
Tied the succession planning program<br />
to individual career plans?<br />
Tied the succession planning program<br />
to training programs?<br />
Established measurable objectives<br />
for program operation (such as number<br />
of positions replaced per year)?<br />
Identified what groups are to be<br />
served by the program, in priority<br />
order?<br />
Does Your Organization’s<br />
Succession Planning<br />
Program Have This<br />
Characteristic?<br />
Yes<br />
No<br />
How Important Do You Believe<br />
This Characteristic to Be<br />
for an Effective Succession<br />
Planning Program?<br />
Not at<br />
All Important<br />
Very<br />
Important<br />
1 2 3 4 5 6<br />
(Mean Response)<br />
89% 11% 4.89<br />
56% 44% 4.00<br />
67% 33% 3.67<br />
67% 33% 3.67<br />
33% 67% 3.44
F<br />
G<br />
Established a written policy statement<br />
to guide the program?<br />
Articulated a written philosophy<br />
about the program?<br />
78% 22% 3.78<br />
78% 22% 3.67<br />
H Established a program action plan? 100% 0% 4.56<br />
I<br />
J<br />
K<br />
L<br />
Established a schedule of program<br />
events based on the action plan?<br />
Fixed responsibility for organizational<br />
oversight of the program?<br />
Fixed responsibility of each participant<br />
in the program?<br />
Established incentives/rewards for<br />
identified successors in the succession<br />
planning program?<br />
67% 33% 4.22<br />
89% 11% 4.00<br />
78% 22% 3.78<br />
11% 89% 3.22<br />
(continues)
Exhibit 3-1. (continued)<br />
M<br />
N<br />
O<br />
P<br />
Q<br />
R<br />
Characteristics of Effective Succession<br />
Planning Programs<br />
How Your Organization:<br />
Established incentives/rewards for<br />
managers with identified successors?<br />
Developed a means to budget for a<br />
succession planning program?<br />
Devised means to keep records for<br />
individuals who are designated as<br />
successors?<br />
Created workshops to train management<br />
employees about the succession<br />
planning program?<br />
Created workshops to train individuals<br />
about career planning?<br />
Established a means to clarify present<br />
position responsibilities?<br />
Does Your Organization’s<br />
Succession Planning<br />
Program Have This<br />
Characteristic?<br />
Yes<br />
No<br />
How Important Do You Believe<br />
This Characteristic to Be<br />
for an Effective Succession<br />
Planning Program?<br />
Not at<br />
All Important<br />
Very<br />
Important<br />
1 2 3 4 5 6<br />
(Mean Response)<br />
11% 89% 3.00<br />
56% 44% 4.00<br />
56% 44% 3.78<br />
33% 67% 4.00<br />
56% 44% 4.11<br />
100% 0% 4.00
S<br />
T<br />
U<br />
V<br />
W<br />
X<br />
Y<br />
Z<br />
Established a means to clarify future<br />
position responsibilities?<br />
Established a means to appraise individual<br />
performance?<br />
Established a means to compare individual<br />
skills to the requirements of<br />
a future position?<br />
Established a way to review organizational<br />
talent at least annually?<br />
Established a way to forecast future<br />
talent needs?<br />
Established a way to plan for meeting<br />
succession planning needs through<br />
individual development plans?<br />
Established a means to track development<br />
activities and prepare successors<br />
for eventual advancement?<br />
Established a means to evaluate the<br />
results of the succession planning<br />
program?<br />
67% 33% 3.89<br />
67% 33% 4.00<br />
44% 56% 3.89<br />
67% 33% 4.00<br />
67% 33% 3.89<br />
56% 44% 3.89<br />
44% 56% 3.89<br />
44% 56% 3.89<br />
Source: William J. Rothwell, Results of a 2004 Survey on Succession Planning and Management Practices. Unpublished survey results (University Park, Penn.: The Pennsylvania State University, 2004).
64 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Exhibit 3-2. Assessment Questionnaire for Effective Succession Planning<br />
and Management<br />
Directions: Complete the following Assessment Questionnaire to determine how well<br />
your organization is presently conducting SP&M. Read each item in the Questionnaire<br />
below. Circle (Y) for Yes, (N/A) for Not Applicable, oran(N) for No in the left<br />
column opposite each item. Spend about 15 minutes on the questionnaire. When<br />
you finish, score and interpret the results using the instructions appearing at the end<br />
of the Assessment Questionnaire. Then share your completed Questionnaire with<br />
others in your organization. Use the Questionnaire as a starting point to determine<br />
the need for a more systematic approach to SP&M in your organization.<br />
The Assessment Questionnaire<br />
Circle your<br />
response<br />
below:<br />
In your organization, would you say that SP&M:<br />
Y N/A N 1. Enjoys top management participation, involvement<br />
and support?<br />
Y N/A N 2. Is geared to meeting the unique needs of the organization?<br />
Y N/A N 3. Has been benchmarked with best-in-class organizations?<br />
Y N/A N 4. Is a major focus of top management attention?<br />
Y N/A N 5. Is the dedicated responsibility of at least one highlevel<br />
management employee?<br />
Y N/A N 6. Extends to all levels rather than being restricted to top<br />
positions only?<br />
Y N/A N 7. Is carried out systematically?<br />
Y N/A N 8. Is heavily influenced by a comparison of present performance<br />
and future potential?<br />
Y N/A N 9. Is influenced by identification of high-level replacement<br />
needs?<br />
Y N/A N 10. Has sensitized each executive to an obligation to<br />
identify and prepare successors?<br />
Y N/A N 11. Has prompted the organization to establish and conduct<br />
specific developmental programs that are designed<br />
to accelerate the development of highpotential<br />
employees?<br />
Y N/A N 12. Is guided by a philosophy that high-potential employees<br />
should be developed while working rather than by<br />
being developed primarily through off-the-job experiences?
Moving to a State-of-the-Art Approach<br />
65<br />
Y N/A N 13. Has prompted the organization to focus developmental<br />
programs on increasing the familiarity of highpotential<br />
employees with who does what, when they<br />
do it, where they do it, why they do it, and how they<br />
do it?<br />
Y N/A N 14. Has prompted the organization to focus developmental<br />
programs on the critical questioning of ‘‘the<br />
way things have always been done’’?<br />
Y N/A N 15. Emphasizes the qualities or competencies necessary<br />
to surpass movement to the next higher-level job?<br />
Y N/A N 16. Has prompted your organization to examine, and<br />
perhaps use, formal mentoring?<br />
Y N/A N 17. Is conducted in a systematic way?<br />
Y N/A N 18. Encourages the cross-divisional sharing of people<br />
and information?<br />
Y N/A N 19. Is reinforced by a leadership that actively rewards<br />
managers for promoting (rather than holding on to)<br />
their best employees?<br />
Y N/A N 20. Is supported by career paths that move not just up a<br />
specialized ladder but across a continuum of professional<br />
competence?<br />
Y N/A N 21. Is supported by frequent opportunities for employees<br />
to accept new challenges?<br />
Y N/A N 22. Is driven, in part, by recognition that employees have<br />
a stake in the organization and share its successes?<br />
Y N/A N 23. Has prompted an explicit policy favoring promotion<br />
from within?<br />
Total<br />
Scoring and Interpreting the Assessment Questionnaire<br />
Give your organization 1 point for each Y and a 0 for each N or N/A listed above.<br />
Total the points from the Y column and place the sum in the line opposite to the<br />
word TOTAL above. Then interpret your score in the following way:<br />
(continues)
66 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Exhibit 3-2. (continued)<br />
Score<br />
Above 20 points<br />
Succession planning and management appears to be<br />
handled in an exemplary manner in your organization.<br />
18–20 points The SP&M efforts of your organization could stand improvement.<br />
However, SP&M is being handled effectively,<br />
for the most part.<br />
14–17 points Succession planning and management is a problem in<br />
your organization. It deserves more attention.<br />
Below 14 points<br />
Your organization is handling SP&M in a crisis mode. It<br />
is very likely that successors for critically important positions<br />
have not been identified and are not systematically<br />
developed. Immediate corrective action is desirable.<br />
properly assumes an important leadership role for the program and does not<br />
try to delegate it prematurely to Human Resources or to other groups.<br />
As I tell my clients, the CEO is the real customer for most SP&M efforts—<br />
and my view is supported by the opinions of members of many boards of<br />
directors. When the SP&M effort begins with the CEO, he or she understands<br />
what is involved in establishing a state-of-the-art SP&M program and is able to<br />
tailor it to suit his or her vision and strategy. Furthermore, he or she sets the<br />
example and sends a powerful message of personal commitment and support<br />
that is needed to make subsequent generations of such an effort successful.<br />
It is worth noting that HR plays an important role. But it is essential to<br />
emphasize that HR does not ‘‘own’’ this effort. The ‘‘owner’’ is the CEO, and<br />
it is a position that (on this topic) he or she cannot delegate. HR leaders can<br />
certainly help: They can coordinate the effort, once leadership by the CEO has<br />
been exercised. They can provide advice and counsel about what to do, why it<br />
should be done, and how it should be done. But the CEO must lead the effort<br />
and be personally committed to it. Lacking the CEO’s personal support, commitment,<br />
and participation, SP&M efforts will fail.<br />
The second generation is a simple replacement plan for the CEO and his<br />
or her immediate reports—that is, the senior leaders of the organization, the<br />
senior executive team. By extending the SP&M effort to the management tier<br />
below CEO and by identifying the successors of that group, senior managers<br />
are involved firsthand in designing and implementing a succession effort.<br />
Since they are the targets of that effort, they understand it, have a chance to<br />
refine it, and develop ownership in it. By actively participating in the effort,<br />
they gain a thorough understanding of it so that they can communicate to<br />
others in the third generation.<br />
A key advantage of using the senior executive team as guinea pigs, so to<br />
speak, is that they are usually already well developed in their positions and are<br />
highly knowledgeable about what it takes to succeed in the business, industry,
Moving to a State-of-the-Art Approach<br />
67<br />
Exhibit 3-3. A Simple Exercise to Dramatize the Need for Succession<br />
Planning and Management<br />
For a dramatic and compelling exercise to emphasize the need for an SP&M program,<br />
ask your CEO or the managers in your organization what the following people<br />
share in common:<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Donald Terner, President, Bridge Housing Corp., San Francisco, Calif.<br />
Robert E. Donovan, President and Chief Executive Officer, Abb Inc., Norwalk,<br />
Conn.<br />
Claudio Elia, Chairman and Chief Executive Officer, Air & Water Technologies<br />
Corp., Somerville, N.J.<br />
Stuart Tholan, President, Bechtel-Europe/Africa/Middle East/Southwest Asia, San<br />
Francisco, Calif.<br />
John A. Scoville, Chairman, Harza Engineering Co., Chicago, Ill.<br />
Leonard Pieroni, Chairman and Chief Executive Officer, Parsons Corp., Pasadena,<br />
Calif.<br />
Barry L. Conrad, Chairman and Chief Executive Officer, Barrington Group,<br />
Miami, Fla.<br />
Paul Cushman III, Chairman and Chief Executive Officer, Riggs International<br />
Banking Corp., Washington, D.C.<br />
Walter Murphy, Senior Vice President, AT&T Submarine Systems Inc., Morristown,<br />
N.J.<br />
Robert A. Whittaker, Chairman and Chief Executive Officer, Foster Wheeler Energy<br />
International, Clifton, N.J.<br />
Frank Maier, President, Ensearch International Ltd., Dallas, Tex.<br />
David Ford, President and Chief Executive Officer, Interguard Corp. of Guardian<br />
International, Auburn Hills, Mich.<br />
Answer: These were the people on board the plane with Commerce Secretary Ron Brown when it crashed in<br />
1996. Don’t you wonder if they had replacements ready in their organizations?<br />
Used with permission from Nursing Management, 25:6 (June 1994), pp. 50–56, Springhouse Corporation (www.Springnet<br />
.com).<br />
and corporate culture. By participating in the development of the SP&M effort,<br />
they ensure that it fits the corporate culture and aligns with organizational<br />
strategy. What is more, they set an example and, by doing that, send a powerful<br />
message to others in the organization that the SP&M effort is important and<br />
worthy of action, interest, and participation.<br />
The third generation is an SP&M program for middle managers, who are<br />
usually the direct reports of the senior executive team, and perhaps (if the<br />
organization’s leaders support it) for others on the organization chart as well.<br />
It is at this point that the model of SP&M, described later in this chapter (see<br />
Exhibit 3-5), is first widely used. Policies and procedures for SP&M are drafted<br />
if they were not already prepared formally in earlier generations; competency<br />
models by department or hierarchical level are first developed if they were not
68 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
already prepared formally in earlier generations; value statements are crafted;<br />
and other key components of a modern SP&M program are designed, developed,<br />
and refined. By extending to this third tier and by identifying the successors<br />
of that group, middle managers are involved firsthand in designing and<br />
implementing an effort. Since they are the targets of the succession effort, they<br />
come to understand it and develop ownership in it. They also help refine it<br />
for their level and for those below them on the organization chart. The third<br />
generation is the most risky, since more people are involved and many new<br />
policies, procedures, and practices are first established, tested, and implemented.<br />
The fourth generation moves beyond simple replacement plans to focus<br />
on the development of internal talent pools. Internal talent pools are groups<br />
of people inside the organization who are being developed for the future.<br />
Everyone is considered a possible successor for key positions and given such<br />
tools as career maps to help them prepare themselves for the future. In this<br />
generation, succession issues are divorced from the organization chart. Instead<br />
of targeting specific individuals to be successors, the organization’s decision-makers<br />
use the many tools put in place in the third generation. It is<br />
possible in this generation to use competency models, performance appraisals,<br />
individual development plans, full-circle multirater assessments, and other<br />
sophisticated methods to help all workers develop to realize their potential.<br />
The fifth generation focuses on the development of external as well as<br />
internal talent pools. External talent pools are groups of people outside the<br />
organization who are possible sources of talent for the future. Instead of waiting<br />
until key positions come open to source talent, the organization’s decisionmakers<br />
include in their talent pools temporary and contingent workers, retired<br />
workers, outsourcing agents, vendors, consultants, and even (perhaps)<br />
members of their organization’s supply and distribution channels. In short,<br />
decision-makers look around the organization’s external environment to see<br />
what talent exists outside as well as inside their organizations that could be<br />
tapped. In that way, they lead the target and slash the time needed to fill critical<br />
positions.<br />
The fifth generation of SP&M is the most sophisticated. It is not easy—and<br />
usually not even possible—for an organization to make a single leap from<br />
no SP&M effort to a fifth-generation approach. Too much infrastructure and<br />
management support, not to mention the learning that occurs in generations<br />
one through four, are needed to make it work. The risks of failure are far too<br />
high. A better approach is to think in terms of a gradual phase-in, moving to a<br />
generation that meets the needs of the organization. (Not all organizations<br />
need a fifth-generation approach.) That phase-in can occur fastest in organizations<br />
that are small, face a stable market, and possess low turnover in the<br />
management ranks. That phase-in occurs more slowly in organizations that are<br />
larger, face dynamic or fiercely competitive markets, and possess high turnover<br />
in the management (or high potential) ranks.
Moving to a State-of-the-Art Approach<br />
69<br />
Another way to think about generations of succession planning programs<br />
is, of course, possible. Indeed, the Dow Chemical Company Case (described<br />
in Exhibit 3-4) presents such an alternative view of the life cycle of succession<br />
planning and management programs.<br />
Identifying and Solving Problems with Various Approaches<br />
The cases appearing in the Appendix summarize several exemplary approaches<br />
to SP&M in organizations of varying sizes and industry categories.<br />
However, not all organizations handle SP&M as effectively or efficiently. Indeed,<br />
two experts speaking at an American Management Association Human<br />
Resources Conference indicated that succession planning is being woefully<br />
‘‘ignored by a majority of American companies.’’ 7<br />
Many problems bedevil current approaches to SP&M. Exhibit 3-5 summarizes<br />
the chief difficulties in using succession planning that were described by<br />
the respondents to my 2004 survey on succession planning practices. Additionally,<br />
I review seven common problems affecting SP&M programs below.<br />
Problem 1: Lack of Support<br />
‘‘One of the major drawbacks HR managers face in establishing a company<br />
succession plan is the lack of support from top company executives.’’ 8 Indeed,<br />
‘‘the attitude of too many corporation executives is ‘why bother?’ ’’ 9 If top managers<br />
lack a sense of urgency, no SP&M program can be effective.<br />
If top managers are unwilling to support a systematic approach to succession<br />
planning, it cannot succeed. If that is the case, the best strategy is to try<br />
to win over one or more credible idea champions. Especially promising for<br />
those roles are well-respected top managers who have recently—and, if possible,<br />
personally—experienced the work-related problems that stem from having<br />
no successor prepared to assume a critically important position when a<br />
vacancy occurs.<br />
Problem 2: Corporate Politics<br />
A second problem with succession planning is that it can be affected by corporate<br />
politics. Instead of promoting employees with the most potential or the<br />
best track record, top managers—or, indeed, any level of management employee—may<br />
‘‘use the corporate ladder to promote friends and allies, while<br />
punishing enemies, regardless of talent or qualifications.’’ 10 If allowed to operate<br />
unchecked, corporate politics can supplant performance and potential as<br />
an advancement criterion.<br />
(text continues on page 72)
70 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Exhibit 3-4. The Dow Chemical Company’s Formula for Succession<br />
Ben & Jerry’s, in its challenge to Haagen-Dazs in the great American ice cream<br />
wars, actually considered the issue of the succession of a chief executive through an<br />
essay contest dubbed ‘‘Yo, I wanna be your CEO.’’ Cooler heads prevailed, and<br />
Ben & Jerry’s is now headed by an experienced executive.<br />
Nevertheless, today’s business headlines are too full of corporate embarrassments<br />
in the form of chief executives staying on too long and stifling potential successors<br />
or rivals, divided boards which are often out of touch with shareholders’ interests,<br />
internal power struggles which lead to a mass exodus of talent when a new chief<br />
executive is finally selected, and damage to the company as an all-too-public search<br />
erodes confidence and impedes the smooth running of the business.<br />
Helping to select the right successor is the ultimate obligation of a chief executive.<br />
While this is done in concert with the board of directors, the responsibility for the<br />
quality of candidates and the attractiveness of the job rests with current management.<br />
Among the key tasks addressed by boards, succession is often the most neglected.<br />
This is because the issue arises relatively infrequently.<br />
Succession strategy in most companies must make six transitions:<br />
1. From an Annual Event to a Continuous Process. Companies need to create an<br />
environment of continuous succession ‘‘thinking’’ rather than annual succession<br />
‘‘planning.’’ There should be more frequent senior-management meetings, more<br />
time devoted to follow-up at regular staff meetings, more emphasis on succession<br />
issues in business planning and greater incorporation of succession issues into performance<br />
evaluation and management. For example, managers should be developing<br />
at least one person as their potential replacement.<br />
2. From a Short-Term Replacement Strategy to a Long-Term Development and Retention<br />
Strategy. A balance must be struck between the need for immediate replacements<br />
and the need for a steady supply of ready talent. Employees will obviously<br />
appreciate the attention paid to their development and continuous improvement.<br />
3. From an Emphasis on Whom a Company Has to an Emphasis on What a Firm<br />
Needs. Companies must create an atmosphere in which external talent can be hired<br />
to fill critical skill gaps, independent of job openings. Dow mainly promotes from<br />
within, but, says Popoff, ‘‘the benefit and vigor that accrue to us in matching an<br />
outside hire with a clear internal need is not lost on employees, managers or shareholders.’’<br />
4. From Position Blockage to Appropriate Turnover in Key Positions. Companies must<br />
promote and reward capable managers of people, rather than emphasizing technical<br />
over managerial skills. If all of a company’s managers are good at managing
Moving to a State-of-the-Art Approach<br />
71<br />
people, they can routinely assess the potential of incumbents in key positions, develop<br />
appropriate action plans, avoid positions becoming blocked and generate<br />
appropriate turnover.<br />
5. From Insufficient Bench Strength to a Pool of Ready Talent. Dow has created a<br />
Genesis award to recognize people development. In a company with many highly<br />
competent technical and professional people, the award program provides insight<br />
on who is actually practicing good people management. The Genesis award is<br />
Dow’s most-sought-after award. Winners of the award are introduced at the annual<br />
shareholders’ meeting.<br />
6. From Subjective Evaluation to an Emphasis on Results. Dow has established specific<br />
measurements to evaluate succession results. The measurements include: the<br />
percentage of key jobs which have at least two ready successors; the percentage of<br />
key posts filled externally; the percentage of developmental action plans implemented;<br />
and the extent to which the process contributes positively to business results.<br />
At Dow, all management directors must relinquish their management positions at<br />
the age of 60, or five years after their last significant promotion, whichever is later.<br />
But they remain on the board of directors until they reach the age of 65. During<br />
their final five years on the board, they have no line-management responsibilities<br />
and their pay is stepped down annually to their retirement salary at age 65.<br />
Says Popoff: ‘‘These former members of management are some of the best, toughest,<br />
most knowledgeable, best intentioned and hardest working directors I have<br />
come to know.’’ After years of service with the company, people such as the former<br />
chief executive, the director of research and head of international operations know<br />
where the bodies are buried. They are familiar with all the facts and myths of the<br />
company. Along with the outside directors and the chairman, they play a key role in<br />
ensuring an appropriate selection from the talent pool for all key executive posts.<br />
Board members who are former Dow managers have a special ability to test the<br />
internal heirs apparent and work with them to ensure a smooth transition, or to look<br />
outside objectively if the internal pool of talent is lacking.<br />
Succession planning plays a key role in the company’s ability to pursue its long-term<br />
strategies and achieve lasting results. Clearly, good management does not happen<br />
by itself, and succession planning is critical to its continuation. The good news is<br />
that most firms now give succession planning a lot of attention. The bad news is that<br />
too many companies still fail to get it right.<br />
Time was when companies had different people dealing with career and succession<br />
planning. But succession planning is increasingly being viewed in broader and integrated<br />
terms, not least because firms are now less predictable and it is therefore<br />
relatively pointless to identify specific successors for specific jobs for the future. Con-<br />
(continues)
72 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Exhibit 3-4. (continued)<br />
tinual restructuring and reallocation of executive responsibilities to meet changing<br />
priorities are now the normal practice. Within this context, companies need to pay<br />
attention to the strategic process of succession management. The Dow Chemical<br />
Company model would appear to have many virtues.<br />
Note: This is a précis of an article entitled ‘‘Reflections on succession,’’ which was originally published in Arthur D. Little’s Prism,<br />
third quarter, 1996, pp. 109–116. The article is based on a presentation that Frank Popoff made to the Chief Executives’ Club of<br />
Boston.<br />
Source: ‘‘The Dow Chemical Company’s Formula for Succession,’’ Human Resource Management International Digest 5:1 (1997),<br />
9–10. Used with permission of Human Resource Management International Digest.<br />
Exhibit 3-5. Chief Difficulties with Succession Planning and Management<br />
Programs<br />
Question: What are the chief difficulties that your organization has experienced with<br />
a succession planning program? Please describe them briefly below.<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Identifying the high potentials<br />
Preparing individual development plans<br />
Making succession plans a real workable process that people (managers) actually<br />
use when making decisions, not just a file that is put on a shelf<br />
Pushing succession down in the organization<br />
Senior management positions filled usually by political appointment<br />
The quality of the candidate is not good enough<br />
Getting succession management to flow downward from the executive level to<br />
middle management<br />
Monitoring and evaluating successors<br />
Source: William J. Rothwell, Results of a 2004 Survey on Succession Planning and Management Practices. Unpublished survey<br />
results (University Park, Penn.: The Pennsylvania State University, 2004).<br />
To solve this problem, decision-makers must insist on formal ways to identify<br />
work requirements and assess performance and potential rather than<br />
permit subjective judgments to prevail. (Methods of conducting formal assessments<br />
will be described in later chapters of this book.) Informal judgments<br />
are notoriously prone to numerous problems. Among them are recency bias<br />
(performance or potential is assessed with a heavier-than-desirable emphasis<br />
on recent and singular successes or failures); pigeonholing or stereotyping<br />
(supervisors develop impressions of individuals that are difficult to change);<br />
the halo or horn effect (supervisors are overly influenced in their judgments<br />
of individuals by singular events); the Pygmalion effect (supervisors see what<br />
they expect to see); and discrimination (treating people differently solely as a<br />
function of sex, race, age, or other factors unrelated to job performance). Left
Moving to a State-of-the-Art Approach<br />
73<br />
unchecked, informal judgments may also lead supervisors to pick successors<br />
like themselves (the ‘‘like me’’ bias).<br />
Problem 3: Quick-Fix Attitudes<br />
A third problem with the traditional approach to succession planning is that it<br />
can encourage quick-fix attitudes. Effectiveness is sacrificed to expediency.<br />
That can have far-ranging consequences because ill-chosen leaders can prompt<br />
higher-than-normal turnover among their followers, create employee morale<br />
problems, and even bankrupt an otherwise sound business. Leadership does<br />
matter, and leaders cannot be cultivated quickly or easily. 11 Excellent leaders<br />
can only be cultivated over time.<br />
Problem 4: Low Visibility<br />
Top-level executives do not always see the fast, direct benefits of SP&M. The<br />
further they are removed from daily operations—and numerous direct reports—the<br />
less valuable SP&M can seem to be to them. HR managers will<br />
propose and install various SP&M efforts, but they will often be replaced when<br />
top-level executives see no immediate benefits stemming from them. 12<br />
To solve this problem, succession must be made a high-visibility issue. Further,<br />
it must enjoy the active support—and direct participation—of workers at<br />
all levels. Without showing active support and participating directly, top managers<br />
will have no ownership stake in succession efforts.<br />
Problem 5: The Rapid Pace of Organizational Change<br />
Traditional replacement planning once worked well enough in stable environments<br />
and organizations. In those settings, vacancies could be predicted, candidates<br />
could be trained for targeted jobs, and a homogeneous workforce led<br />
to easy transitions and assured continuity.<br />
But the rapid pace of organizational change has raised serious questions<br />
about the value of the traditional, fill-in-the-box-on-the-organization-chart approach<br />
to replacement-oriented succession planning. Indeed, one management<br />
consultant has asked, ‘‘Is succession planning worth the effort?’’ 13 And<br />
he arrived at this conclusion: ‘‘The simple answer is no. Predicting succession<br />
(over, say, a three-to-five-year time frame) in an era of constant change is fast<br />
becoming an impossibility.’’ 14<br />
To solve this problem, decision-makers need to look beyond a simple technological<br />
solution, such as the use of succession planning software for personal<br />
computers designed to accelerate the organization’s ability to keep pace<br />
with staffing needs and changes. That can help, but more dramatic solutions<br />
are also needed. Possible examples are to focus on work requirements, compe-
74 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
tencies, and success factors so as to maximize the value of developmental activities;<br />
use full-circle, multirater assessments; increase the use of job rotations<br />
to prompt management employees to become more flexible; use action learning<br />
and real-time education to equip management employees with the flexibility<br />
they need to cope with rapid change; establish team-based management so<br />
that key work requirements develop, and are spread across, different individuals;<br />
and move beyond a focus on ‘‘filling boxes on an organization chart’’ to<br />
‘‘meeting work requirements through innovative means.’’ 15<br />
Problem 6: Too Much Paperwork<br />
Top managers in most organizations have a low tolerance for paperwork. A<br />
colleague of mine jokes that ‘‘top managers in my organization won’t respond<br />
to a one-page survey or read beyond the first page of a memo.’’ One reason<br />
for this is that top managers are often overburdened with paperwork, since<br />
they receive it from so many quarters. Technology, which was once seen as a<br />
blessed solution to information overload, now appears to be a major cause of<br />
it—as stressed-out managers cope with burgeoning messages by electronic<br />
mail, cell phones, faxes, and other sources.<br />
Hence, one problem with the traditional approach to succession planning<br />
is that it may require substantial paperwork to:<br />
▲ Assess present work requirements or competencies.<br />
▲ Appraise current individual performance.<br />
▲ Assess future work requirements or competencies.<br />
▲ Assess individual potential for advancement.<br />
▲ Prepare replacement charts.<br />
▲ Identify future career paths or career maps.<br />
▲ Identify key positions requiring replacements.<br />
▲ Establish individual development plans (IDPs) to help individuals narrow<br />
the gap between their present work requirements/performance and<br />
future work requirements/potential.<br />
▲ Follow up on IDPs.<br />
While full-time specialists or part-time HR generalists can provide assistance<br />
in recordkeeping, they can seldom supply the details for every person,<br />
position, and requirement in the organization. Perhaps the best approach is<br />
to minimize the amount of paperwork, but that is difficult to do. Whenever<br />
possible, however, succession planning coordinators, management development<br />
professionals, or human resource professionals should supply information<br />
that is readily available from sources other than the immediate<br />
organizational superiors of employees participating in succession planning ef-
Moving to a State-of-the-Art Approach<br />
75<br />
forts. That way, the superiors can focus their attention on identifying the talent<br />
to implement business strategy, identifying critical positions and high-potential<br />
talent, and formulating and following through on developmental planning.<br />
Problem 7: Too Many Meetings<br />
Just as the traditional approach to succession planning can create resistance<br />
owing to the massive paperwork it can generate, so too can it lead to resistance<br />
because it can require numerous and time-consuming meetings. For instance,<br />
to carry out SP&M, management employees may need to participate in the<br />
following:<br />
▲ Kickoff Meetings. If an annual SP&M procedure is in place, management<br />
employees may be required to attend kickoff meetings, conducted by the CEO,<br />
that are intended to reinforce the importance of the effort.<br />
▲ Organizational, Divisional, Functional, or Other Meetings. These<br />
meetings may focus on SP&M for each job category, organizational level, function,<br />
or location.<br />
▲ Work Requirements Meetings. If the organization makes it a policy to<br />
base succession on identifiable work requirements, competencies, success factors,<br />
or other ‘‘objective criteria,’’ then management employees will usually be<br />
involved in meetings to identify these criteria.<br />
▲ Employee Performance Appraisal Meetings. In most organizations,<br />
management employees appraise the performance of their immediate subordinates<br />
as a part of the SP&M program.<br />
▲ Career Path Meetings. If the organization attempts to identify predictable,<br />
desirable, or historical relationships between jobs, then management employees<br />
may be asked to participate in that effort by attending meetings or<br />
training.<br />
▲ Career Planning Meetings. If the organization makes an effort to discover<br />
individual career goals and interests as a means to do a ‘‘reality check’’<br />
on possible successors, then management employees may have to take time to<br />
meet with each employee covered in the succession plan.<br />
▲ Potential Assessment Meetings. Assessing individual potential is futureoriented<br />
and may require meetings different from those required for performance<br />
appraisal.<br />
▲ Development Meetings. Planning for individual development, as a<br />
means of narrowing the gap between what individuals know or do presently<br />
and what they must know or do to qualify for advancement, may require timeconsuming<br />
individual meetings.<br />
▲ Training, Education, and Developmental Meetings. As one means by<br />
which succession plans may be realized, meetings centered on training, education,<br />
and development may demand considerable time.
76 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
While meetings can be consolidated to save some time, each meeting listed<br />
above serves an important purpose. Attending meetings can require a significant<br />
time commitment from employees at all levels.<br />
Integrating Whole Systems Transformational Change and<br />
Appreciative Inquiry into Succession: What Are These<br />
Topics, and What Added Value Do They Bring?<br />
Since the publication of the second edition of this book, much excitement has<br />
been centered on two (relatively new) developments in change management.<br />
One is called whole systems transformational change (WSTC), the other is<br />
called appreciative inquiry. Both can have a bearing on SP&M programs and<br />
are therefore deserving of attention.<br />
What Is Whole Systems Transformational Change, and How Can It<br />
Have a Bearing on SP&M?<br />
Whole systems transformational change (WSTC) is ‘‘an adaptable and customtailored<br />
wisdom-creating learning experience that often results in a paradigm<br />
shift.’’ 16 It usually involves bringing together the key decision-makers of an<br />
organization for an intense event, usually lasting several days but planned for<br />
in advance. It is an approach that involves everyone and leads to change at the<br />
speed needed in modern business. Think of a problem-solving session that<br />
may involve hundreds or even thousands of people, all focused on solving the<br />
same or related problems, and you have the idea.<br />
How can WSTC have a bearing on SP&M? The answer is that, quite often,<br />
the installation of an SP&M program requires many people to be involved.<br />
Additionally, the human resources system may be missing many key elements<br />
to support an intervention as robust as the introduction of an SP&M intervention.<br />
For example, there may be no competency models, no 360-degree capability,<br />
no individual learning plans, and no technology to support the SP&M<br />
program. Creating these takes time and can lead to a loss of faith in the SP&M<br />
program from executives or others. Worst yet, executives and other senior<br />
leaders in the organization may not share the same goals or vision for the<br />
SP&M program. Under normal circumstances, there are no easy ways to solve<br />
these problems. But a WSTC brings the key stakeholders together, facilitating<br />
a process whereby they ‘‘thrash out’’ the key decisions, build key support systems,<br />
and communicate among themselves to achieve some comparability in<br />
goals.<br />
The WSTC is, in short, a possible tool—though it is also a philosophy—for<br />
bringing about the rapid but large-scale change needed to support a SP&M<br />
intervention.
Moving to a State-of-the-Art Approach<br />
77<br />
What Is Appreciative Inquiry, and How Can It Have a Bearing<br />
on SP&M?<br />
Is a glass half empty, or is it half full? That simple question actually has profound<br />
implications. It speaks to the difference between a problem-centered<br />
orientation to the world and a strength-leveraging orientation. Most managers<br />
are problem-oriented. They do not believe in fixing what is not broken. Hence,<br />
they tend to focus on the negative—what is wrong, what the problems are,<br />
and (with people) what their deficiencies or gaps are. But the problem with<br />
always focusing on the negative is that it shuts people down and depresses or<br />
demotivates them.<br />
Appreciative inquiry (AI), however, requires a paradigm shift. It takes its<br />
name quite literally from asking about (that is, inquiring) what is going well<br />
(that is, appreciation).<br />
Hence, the phrase appreciative inquiry literally means ‘‘asking questions<br />
about things worth appreciating.’’ Appreciative inquiry thus focuses on what<br />
is going right, what the strengths are, and (with people) what their unique<br />
talents or abilities are. 17<br />
How can this idea be applied to SP&M? There are many answers to that<br />
simple question, and the space here is insufficient to treat them all. Suffice it<br />
to say that, instead of focusing on what deficiencies or gaps people possess, AI<br />
indicates that a better approach is to identify individuals’ strengths and talents,<br />
and then capitalize or build on those strengths. One goal is to energize people<br />
with positive feelings about what they can achieve, what they do well, and<br />
what is good about them. Another goal is to encourage people to discover and<br />
capitalize on their strengths and talents.<br />
While there are many potential applications of AI to SP&M, I will point to<br />
just one. In conducting a 360-degree assessment, an organization will typically<br />
collect scores on individuals and then schedule a session to discuss in what<br />
competencies that individual is deficient. A goal is to pinpoint developmental<br />
gaps and then discuss ways to fill them by using developmental experiences,<br />
such as training or coaching.<br />
But when AI is used, the tenor of the feedback session for 360-degree<br />
assessment shifts from what is wrong with the person to what is uniquely right<br />
about the person. Attention is devoted to discussing what others perceive to<br />
be that person’s unique strengths, talents, and abilities. The individual is encouraged<br />
to mentor others in areas where he or she is strong. The individual<br />
is also encouraged to think about how he or she could better leverage the<br />
strengths that he or she possesses. The difference in results can be profound.<br />
Instead of walking out of the room depressed, an individual may walk out<br />
energized and excited.<br />
AI has many potential applications to SP&M. 18 We have only scratched the<br />
surface. But it is worth thinking about how AI may mean new, fresh, and positive<br />
approaches to developing people. Think about that as you read the rest of<br />
this book.
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Requirements for a Fifth-Generation Approach<br />
Minimum requirements for a fifth-generation approach to SP&M include the<br />
following:<br />
▲ A Policy and Procedure Statement, in Writing, to Govern SP&M<br />
▲ A Statement of Values Governing the Effort (which may be included in<br />
the policy and procedure statement)<br />
▲ Competency Models for the Groups Targeted<br />
▲ Full-Circle, Multirater Assessment Efforts (or other ways to assess individual<br />
potential)<br />
▲ Individual Development Plans<br />
▲ Skill Inventories for Talent Pools Inside and Outside the Organization<br />
Of course, it goes without saying that senior management involvement and<br />
support are essential requirements—as are, particularly, the personal commitment<br />
and participation of the CEO.<br />
Key Steps in a Fifth-Generation Approach<br />
How should systematic SP&M be carried out in organizational settings? While<br />
the answer to this question may vary by national culture, organizational culture,<br />
and top management values, one way is to follow a ‘‘seven-pointed star<br />
model for systematic succession planning and management.’’ That model is<br />
illustrated in Exhibit 3-6. The steps in the model, summarized below, provide<br />
the foundation for this book—and the foundation for many best-practice<br />
SP&M programs in many organizations.<br />
Step 1: Make the Commitment<br />
As a first step, the organization’s decision-makers should commit to systematic<br />
SP&M and establish an SP&M program. To some extent, this represents a ‘‘leap<br />
of faith’’ in the value of planned over unplanned approaches to SP&M. In this<br />
step the organization’s decision-makers should:<br />
▲ Assess current problems and practices.<br />
▲ Assess and demonstrate the need for the program.<br />
▲ Determine the organization’s exact SP&M program requirements.<br />
▲ Link the SP&M program directly to organizational and human resource<br />
strategic plans.<br />
▲ Benchmark SP&M practices in other organizations.<br />
▲ Clarify the roles of different groups in the program.<br />
▲ Formulate a program mission statement.
Moving to a State-of-the-Art Approach<br />
79<br />
Exhibit 3-6. The Seven-Pointed Star Model for Systematic Succession<br />
Planning and Management<br />
Step 1:<br />
Make the<br />
Commitment<br />
Step 7:<br />
Evaluate the Succession<br />
Planning Program<br />
Step 2:<br />
Assess Present Work/People<br />
Requirements<br />
Step 6:<br />
Close the<br />
Developmental Gap<br />
Step 3:<br />
Appraise Individual<br />
Performace<br />
Step 5:<br />
Assess Future<br />
Individual Potential<br />
Step 4:<br />
Assess Future Work/People<br />
Requirements<br />
▲ Write a policy and procedures to guide the program.<br />
▲ Identify target groups to be served by the program.<br />
▲ Establish program priorities.<br />
▲ Prepare an action plan to guide the program.<br />
▲ Communicate the action plan.<br />
▲ Conduct SP&M meetings as necessary to unveil the program and review<br />
progress continually.<br />
▲ Train those involved in the program as necessary.<br />
▲ Counsel managers about SP&M problems in their areas of responsibility.
80 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Step 2: Assess Present Work/People Requirements<br />
As a second step, decision-makers should assess the present work requirements<br />
in key positions. Only in that way can individuals be prepared for advancement<br />
in a way that is solidly grounded on work requirements. In this<br />
step, decision-makers should clarify where key leadership positions exist in<br />
the organization and should apply one or more approaches to determining<br />
work or competency requirements.<br />
Step 3: Appraise Individual Performance<br />
How well are individuals presently performing their jobs? The answer to this<br />
question is critical because most SP&M programs assume that individuals must<br />
be performing well in their present jobs in order to qualify for advancement.<br />
As part of this step, the organization should also begin establishing an inventory<br />
of talent so that it is clear what human assets are already available.<br />
Step 4: Assess Future Work/People Requirements<br />
What will be the work or competency requirements in key leadership positions<br />
in the future? To answer this question, decision-makers should make an effort<br />
to assess future work requirements and competencies. In that way, future leaders<br />
may be prepared to cope with changing requirements and organizational<br />
strategic objectives.<br />
Step 5: Assess Future Individual Potential<br />
How well are individuals prepared for advancement? What talents do they possess,<br />
and how well do those talents match up to future work requirements? To<br />
answer these questions, the organization should establish a process to assess<br />
future individual potential. That future-oriented process should not be confused<br />
with past- or present-oriented employee performance appraisal.<br />
Step 6: Close the Developmental Gap<br />
How can the organization meet SP&M needs by developing people internally<br />
or using other means to meet succession needs? To answer this question, the<br />
organization should establish a continuing program for leadership development<br />
to cultivate future leaders internally. Decision-makers should also explore<br />
alternatives to traditional promotion-from-within methods of meeting<br />
succession needs.
Moving to a State-of-the-Art Approach<br />
81<br />
Step 7: Evaluate the Succession Planning Program<br />
To improve, the SP&M program must be subjected to continual evaluation to<br />
assess how well it is working. That is the seventh and final step of the model.<br />
The results of evaluation should, in turn, be used to make continuous program<br />
improvements and to maintain a commitment to systematic SP&M.<br />
Summary<br />
This chapter listed the characteristics that are found in exemplary succession<br />
planning and management programs. It then summarized typical problems<br />
afflicting succession planning and management programs, and suggested possible<br />
solutions to them. It also presented a seven-pointed star model for systematic<br />
succession planning and management.
C H A P T E R 4<br />
COMPETENCY IDENTIFICATION AND<br />
VALUES CLARIFICATION: KEYS TO<br />
SUCCESSION PLANNING AND<br />
MANAGEMENT<br />
Competency identification and values clarification are increasingly important<br />
foundations for an effective succession planning and management (SP&M)<br />
program. But what are competencies? How are competencies used in SP&M?<br />
How are competencies identified and used to guide SP&M efforts? What are<br />
values, and what is values clarification? How are values used in SP&M? How<br />
are values clarification studies conducted and used for SP&M? This chapter<br />
answers these questions.<br />
What Are Competencies?<br />
The word competence was first linked to a human trait in 1959. 1 Using that<br />
work as a starting point, David McClelland focused attention on competencies<br />
in 1973. 2 McClelland noticed that standardized intelligence tests were not<br />
good predictors of job success, and he wondered why. Competencies as understood<br />
today stemmed from his initial questioning about why standardized<br />
intelligence tests did not predict job success. Other authors and researchers,<br />
of course, contributed to the development of competency identification, modeling,<br />
and assessment as known and practiced today. 3<br />
Although the term job competency has different meanings, it can be understood<br />
to mean ‘‘an underlying characteristic of an employee (i.e., motive, trait,<br />
skill, aspects of one’s self-image, social role, or a body of knowledge) that<br />
results in effective and/or superior performance in a job.’’ 4 Competency identification<br />
is the process of discovering job competencies. 5 A competency model<br />
is the result of competency identification. 6 Competency assessment is the process<br />
of comparing an individual to an existing competency model, 7 and that can<br />
be done by many means—including full-circle, multirater assessment.<br />
Organizations have made extensive use of competency models in recent<br />
82
Competency Identification and Values Clarification<br />
83<br />
years, which have been widely accepted. 8 One reason is that competency models<br />
can help to clarify differences between outstanding (exemplary) and average<br />
performers—an increasingly important issue in a fiercely competitive<br />
global business environment. A second reason is that competency models are<br />
superior to work-based approaches, which rely on descriptions of work activities<br />
only, in pinpointing what people need to be successful. Increasingly,<br />
knowledge is only part of what is needed to be a successful performer. Also<br />
needed are appropriate attitudes and motivation, which are not well examined<br />
in traditional job descriptions or traditional performance appraisals.<br />
How Are Competencies Used in Succession Planning and<br />
Management?<br />
Competency models are essential building blocks on which to base an SP&M<br />
effort. Without them, it is difficult to:<br />
▲ Link and align the organization’s core competencies (strategic strengths)<br />
to job competencies.<br />
▲ Define high-potentials or other broad categories of employees.<br />
▲ Clarify exactly what present and future competencies are essential to<br />
success in the organization and in its various departments, jobs, or occupations.<br />
▲ Provide a basis for performance management by creating a work environment<br />
that encourages high performance among all workers.<br />
▲ Establish clear work expectations for the present and future.<br />
▲ Create full-circle, multirater assessments that are tailor-made to the<br />
unique requirements of one corporate culture.<br />
▲ Devise competency menus that describe how individuals might be developed<br />
for the future.<br />
▲ Formulate individual development plans (IDPs) to help individuals narrow<br />
the developmental gap between what competencies they need to<br />
be successful (as described by the competency model) and what competencies<br />
they presently possess (as identified by a full-circle, multirater<br />
assessment or other approaches to examining current performance or<br />
future potential).<br />
Conducting Competency Identification Studies<br />
Competency studies may have different goals. The goals must be clear before<br />
the resulting studies will be useful. Those who set out to conduct competency<br />
studies should be clear what they are trying to do, why they are doing it, and<br />
what their stakeholders (such as the CEO) are seeking. Elaborate studies do
84 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
little good if nobody knows what they are for, nobody really wanted them, or<br />
nobody knows how to use them.<br />
A present competency study, to define the term, focuses on one department,<br />
job category, or occupational group. In conducting a competency study<br />
of this kind, it is usually important to create two distinct groups—exemplary<br />
performers and average performers—for the department or other unit studied.<br />
The goal is usually to discover the difference between the highest performers<br />
in the group and the average performers in that same group. When<br />
completed, the present competency study clarifies what are the essential competencies<br />
for success at present.<br />
A future competency study also focuses on one department, job category,<br />
or occupational group. But in conducting a competency study of this kind, it<br />
is usually important to start by describing the organization’s strategic goals<br />
and objectives. What results will the organization seek in the future? Why will<br />
those results be sought? What competencies are necessary to realize those results?<br />
A different approach is needed from that in a present competency study.<br />
Often, there may be nobody in the organization who is an exemplary performer<br />
when compared to future requirements. It may thus be necessary to do<br />
scenario planning to discover the competencies needed in a future business<br />
environment. That also requires a level of sophistication that few internal practitioners<br />
possess—or have time to use if they do.<br />
A derailment competency study, to define the term, focuses on the characteristics<br />
linked to failure—or to falling off the fast track—for those in one department,<br />
job category, or occupational group. In conducting a derailment<br />
study, it is usually important to identify individuals who have failed assignments,<br />
dropped off the high-potential list, experienced career plateauing, or<br />
otherwise become ineligible for a list of successors or high potentials. The goal<br />
is to determine why people who were once considered high potentials fell off<br />
the track or reached a career plateau. Once that is known, of course, strategies<br />
can be formulated to help them develop and surmount their failures—and<br />
help others avoid similar problems. Causes of derailment might include,<br />
among others, problems with morals (such as sexual indiscretions) or problems<br />
with health-related issues (such as alcoholism or drug-related ailments).<br />
Different approaches to competency identification have been devised. 8<br />
While space is not available here to review each approach to competency identification,<br />
those who are serious about SP&M will search out information about<br />
available approaches. They will select an approach that is compatible with the<br />
organization’s corporate culture, since introducing competency modeling to<br />
an organization that has not used it before is really a change effort in its own<br />
right.<br />
Competency modeling offers a newer way to identify characteristics linked<br />
to exemplary job performance than traditional job analysis. An advantage of<br />
competency modeling is its rigor. Another is its ability to capture the (otherwise<br />
ineffable) characteristics of successful job performers and job perform-
Competency Identification and Values Clarification<br />
85<br />
ance. It can provide valuable information on key positions and high-potential<br />
employees on which to base SP&M practices.<br />
Unfortunately, competency modeling does have disadvantages. One is that<br />
the term’s meaning can be confusing. Another, more serious, disadvantage is<br />
that rigorous approaches to competency modeling usually require considerable<br />
time, money, and expertise to carry out successfully. Rarely can they be<br />
done internally except by the largest organizations. These can be genuine<br />
drawbacks when the pressure is on to take action—and achieve results—<br />
quickly.<br />
Using Competency Models<br />
Competency models have emerged as a foundation for state-of-the-art SP&M<br />
programs. Lacking them, organizations will rarely be able to proceed beyond a<br />
simple replacement approach to SP&M. They provide a blueprint for building<br />
competence needed at present or in the future, and they provide a norm or<br />
criterion against which to measure individual development requirements.<br />
They are especially important when an organization commits to developing<br />
talent pools, since they provide a standard against which all individuals may<br />
be assessed.<br />
New Developments in Competency Identification,<br />
Modeling, and Assessment<br />
What’s new in competency identification, modeling, and assessment? One new<br />
development is that competency modeling seems to have caught on. Businesses<br />
in the United States are estimated to be spending about $100 million<br />
per year in identifying competency models for their organizations. 9 And yet<br />
much work remains to be done. Not all competency modeling efforts are effective.<br />
One reason is that HR professionals and operating managers alike are not<br />
properly trained in, or do not understand, what competency models are for<br />
and how they relate to organizational requirements.<br />
Another new development is that differences in thinking, and philosophical<br />
views, about competency modeling are becoming more pronounced. A key<br />
question to consider is, ‘‘What does the competency model focus on?’’ It is, of<br />
course, possible to study derailers—that is, what leads to failure. It is also<br />
possible (and many organizations do this) to focus on what is required to<br />
qualify for each level of the corporate hierarchy. But perhaps most important,<br />
it is possible to focus on what measurable productivity differences may exist<br />
between the most productive performers in a job category and those who are<br />
fully trained but are not the most productive (called fully successful performers).<br />
The real value added is in discovering what differences exist between<br />
exemplary and fully successful performers and then integrating hiring, succes-
86 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
sion planning and management, and career-development efforts to create<br />
more exemplary performers in the organization. 10 The goal is to leverage up<br />
the competitive advantage of the organization by gaining the productivity advantages<br />
yielded by more high performers, pound for pound, than other organizations<br />
in the same industry may have. Another issue is what to focus on.<br />
Should the goal be to meet deficiencies or to leverage individual strengths?<br />
A third new development is that many technology packages are now available<br />
to support competency identification and modeling efforts. They often<br />
come packaged as part of larger HR information systems (HRISs) or human<br />
capital management (HCM) suites and should be sought using those keywords.<br />
They may also appear in learning management systems (LMSs).<br />
Unfortunately, some practitioners think that the competency software will<br />
do their thinking for them, which is (of course) not the case. Effective competency<br />
identification, assessment, and modeling are hard work. 11 Technology is<br />
no shortcut—and sometimes has the tendency to cause a short circuit—to<br />
effective practice.<br />
Identifying and Using Generic and Culture-Specific<br />
Competency Development Strategies to Build Bench<br />
Strength<br />
How is it possible to ‘‘build’’ competencies? The answer is to use competency<br />
development strategies. Competency development strategies are methods by<br />
which individuals can improve their competencies. Competency development<br />
strategies close gaps between what should be (as described in a competency<br />
model) and what is (as measured by approaches such as 360-degree assessments<br />
and assessment centers). Examples of competency development strategies<br />
may include the following:<br />
▲ Attending a Classroom Training Course<br />
▲ Participating in Online Training<br />
▲ Reading a Book<br />
▲ Reading an Article<br />
▲ Listening to an Audiotape<br />
▲ Watching a Videotape<br />
These are just examples, and many other approaches are possible. Of course,<br />
to be successful, the developmental strategy must be focused on the competency.<br />
Hence, if the competency to be developed is ‘‘budgeting skill,’’ then the<br />
developmental strategy should be focused on that topic.<br />
Competency development strategies may be divided into two categories:<br />
(1) generic and (2) corporate culture-specific. A generic competency development<br />
strategy is necessarily general. To build budgeting skill, then, any book
Competency Identification and Values Clarification<br />
87<br />
on the topic will do. Any training program on budgeting will do. No effort is<br />
made to tie the development strategy to the unique conditions prevailing in<br />
the corporate culture.<br />
A corporate culture-specific development strategy, on the other hand, is<br />
specific to the organization. To build budgeting skill, an individual might do<br />
the following:<br />
▲ Watch (shadow) someone in the organization who is especially good at<br />
budgeting.<br />
▲ Perform budgeting with someone in the company.<br />
▲ Interview someone experienced in the company about what is necessary<br />
for an acceptable or even exemplary budget.<br />
Many resources exist to identify generic development strategies. 12 Those<br />
can be purchased from outside vendors, found in books, or uncovered on the<br />
Web. All that is needed is to identify appropriate but general material linked<br />
to every competency in a competency model. Corporate culture-specific development<br />
strategies require investigation. One way to identify them is to identify<br />
exemplary performers—individuals who are particularly good at demonstrating<br />
a competency. Then interview them. For example, ask them:<br />
▲ Who in this organization would you advise people to talk to if they want<br />
to build this competency?<br />
▲ What kind of work activities or assignments should individuals be given<br />
if they are to build this competency in this organization?<br />
▲ Where should people go to find centers of excellence for this competency<br />
in this organization?<br />
▲ How would you advise someone in this company who wants to build<br />
this competency to go about learning how it is done here?<br />
Use the interview guide provided in Exhibit 4-1 for this purpose. Then feed<br />
back the interview results to exemplary performers, verify that the assignments<br />
would actually build the targeted competencies in the company, and put them<br />
online so that individuals may access them as they prepare their individual<br />
development plans.<br />
What Are Values, and What Is Values Clarification?<br />
Simply stated, values are beliefs about what is good or bad. Values clarification<br />
is the process of making clear what values take priority over others, what<br />
is more important than other things. While competencies clarify differences<br />
between individual performers, values add an ethical dimension. They de-
88 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
Exhibit 4-1. An Interview Guide to Collect Corporate-Culture-Specific<br />
Competency Development Strategies<br />
Directions: Use this interview guide to collect information about how to build competencies<br />
in the context of your organization’s unique corporate culture. Select several<br />
exemplary performers who have been identified as especially good (exemplary)<br />
at demonstrating a given competency. Indicate that competency next to the label<br />
‘‘competency’’ below. Then spend about 15 minutes to interview each exemplary<br />
performer using the questions appearing below. When you are finished, analyze the<br />
results by identifying common themes or patterns across all the interview results.<br />
Competency:<br />
Name<br />
Years of Experience in Job<br />
Title<br />
Date<br />
Interviewed by:<br />
1. Think of a time when you were asked to demonstrate this competency.<br />
What was the situation?<br />
When did this situation occur?<br />
What did you do?<br />
How do you believe the experience helped you demonstrate this competency?<br />
If your mentee participated in an experience like this, would it help to build the<br />
competency?<br />
2. Who are some people in the organization who are exceptionally good at demonstrating<br />
this competency to whom you could refer your mentee?<br />
3. What are some work experiences in the organization that you believe your<br />
mentee should be given to build or demonstrate the competency?<br />
4. How might the pressure to produce by specific deadlines help to build or demonstrate<br />
the competency?<br />
5. Where would you send people—that is, what geographical locations—to build<br />
and /or demonstrate this competency? (Where are the centers of excellence for<br />
this competency in the organization, and why do you think so?)
Competency Identification and Values Clarification<br />
89<br />
6. List special and specific work assignments that would be particularly useful in<br />
building or demonstrating this competency.<br />
7. If someone asked you for advice on how to build this competency in this organization,<br />
what advice would you give them?<br />
8. Could you think of some upcoming or pending company projects that might be<br />
especially useful to build this competency? What would they be, and why do you<br />
think they could help to build the competency?<br />
scribe ethical expectations for those who live and work in one corporate culture.<br />
Values have commanded increasing interest in organizational settings.<br />
Consider the following: At a recent annual meeting of Eli Lilly and Company,<br />
Chairman and CEO Randall Tobias extended the meeting by over two hours to<br />
discuss the core values of the company and their importance to the future of<br />
the organization. 13 Similarly, in a recent interview in Organizational Dynamics,<br />
Herb Kelleher, Chairman and CEO of Southwest Airlines, discussed the<br />
central role that values play in that organization. 14 Fortune magazine reported<br />
that over 50 percent of U.S. corporations have a values statement—more than<br />
double that of a decade ago. 15<br />
How Are Values Used in Succession Planning and<br />
Management?<br />
Values statements and values clarification, like competency models, are essential<br />
building blocks on which to base a succession planning and management<br />
effort. Without them, it is difficult to add an ethical dimension to the development<br />
of people in various departments, job categories, or occupations. Much<br />
like competency models, they help to do the following:<br />
▲ Link and align the organization’s core values to group and individual<br />
values.<br />
▲ Define high potentials or other broad categories of employees.<br />
▲ Clarify exactly what present and future values are essential to success in<br />
the organization and in its various departments, jobs, or occupations.<br />
▲ Provide a basis for performance management by creating a work environment<br />
that encourages value-based performance.<br />
▲ Establish the values underlying work expectations for the present and<br />
future.<br />
▲ Create full-circle, multirater assessments that are tailor-made to the<br />
unique requirements of one corporate culture.
90 B ACKGROUND I NFORMATION A BOUT S UCCESSION PLANNING AND M ANAGEMENT<br />
▲ Provide another basis to formulate individual development plans (IDPs)<br />
to help individuals develop themselves to meet present and future challenges.<br />
Conducting Values Clarification Studies<br />
Many tools and techniques are available to help organizations clarify their values.<br />
Some organizations undertake values clarification through small group<br />
activities. 16 Others use unique approaches, such as teaching championship automobile<br />
racing. 17 At least two other approaches may be used. One is simple;<br />
the other is more complicated—but may be more meaningful.<br />
A Simple Approach: Top Management Values Clarification<br />
A simple way to clarify the values of the organization is to ask top managers<br />
what values are most important. To use this approach, provide a brief introduction<br />
to what values are, why they are important, and how they are used.<br />
Then ask senior executives—either in a meeting or online—to describe what<br />
they believe to be the most important values for the organization at present<br />
and in the future. When that list has been gathered from individuals, feed it<br />
back to them, allow them to discuss the list, and ask them to vote on the most<br />
important. When they finish this activity, ask them to define each value and<br />
state its importance to the organization and to individuals.<br />
A More Complicated Approach: Values Clarification from Top<br />
Performers<br />
A more complicated approach to carrying out values clarification is to ask top<br />
performers or high potentials in the organization to describe their values. That<br />
can be done through behavioral event interviewing—a rigorous method used<br />
in competency modeling in which individuals are asked to describe the most<br />
difficult ethical situation they have ever faced in their jobs and describe what<br />
they were thinking, feeling, and doing at each step as they faced that situation.<br />
The values statements should appear as part of their discussion. (If they do<br />
not, then the interviewer should be sure to ask probing questions to elicit<br />
comments about the values in which the high potentials believe.) The values<br />
identified by individual high potentials can then be summarized. What is important<br />
is not what one person says but rather what similar thematic patterns<br />
surface from many respondents.<br />
Once the values have been identified, they can be fed back to high potentials<br />
in focus groups for further discussion and refinement. When that process<br />
is completed, the value statements can be given to top managers for approval
Competency Identification and Values Clarification<br />
91<br />
or modification. In this way, the values clarified for the organization match the<br />
work-related beliefs of the best performers and are validated by top managers.<br />
Using Values Clarification<br />
Values clarification provides an additional, and increasingly important, dimension<br />
to SP&M. Without it, individuals may be equipped with sound competencies<br />
but may lack the ethical dimension that is so important to leadership in<br />
the future. Values can also be integrated with competency models so that it is<br />
possible to create a success profile or description of leadership requirements<br />
essential at all organizational levels, departments, job categories, or occupations<br />
in the future. Alternatively, it is possible to prepare values lists and assessment<br />
instruments against which to compare individuals. 18 In other words, it<br />
is possible to use values as a driving force for building high potentials and<br />
competence in organizations. Like competencies, then, values can be the glue<br />
that holds together all key aspects of a SP&M program.<br />
Bringing It All Together: Competencies and Values<br />
Organizations today need both competencies and values. It is just not enough<br />
to make people good performers. They must be ethical as well and possess a<br />
moral dimension that is consistent with the image the organization wishes to<br />
purvey. Lacking values, high potentials cannot be successful in the long term<br />
and cannot bring credit to the organization.<br />
Summary<br />
As this chapter emphasized, competencies and values are increasingly important<br />
foundations for an effective succession planning and management program.<br />
The chapter defined competencies and explained how they are used in<br />
succession planning and management, then defined values and explained how<br />
values can be used in succession planning and management. A major point of<br />
the chapter was that, without competencies and values, creating a state-of-theart<br />
succession planning and management program will be difficult because<br />
they provide the blueprints for the talent to be created.<br />
The next chapter describes how to lay the foundation for a succession<br />
planning and management program by taking subsequent steps in planning<br />
and implementing a program that will be successful in one organizational setting<br />
or corporate culture.
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PART<br />
II<br />
LAYING THE FOUNDATION FOR A SUCCESSION<br />
PLANNING AND MANAGEMENT PROGRAM<br />
Part I<br />
Background Information About<br />
Succession Planning and Management<br />
Part IV<br />
Part II<br />
Closing the “Developmental Gap”: Laying the Foundation for a<br />
Operating and Evaluating a Succession Succession Planning and<br />
Planning and Management Program<br />
Management Program<br />
Part III<br />
Assessing the Present and the Future<br />
•Assessing current problems and practices<br />
•Demonstrating the need for SP&M<br />
•Determining organizational requirements<br />
•Linking SP&M activities to organizational strategy and human<br />
resource strategy<br />
•Benchmarking SP&M practices in other organizations<br />
•Obtaining and building management commitment to systematic<br />
SP&M<br />
•Clarifying program roles<br />
•Formulating a mission statement<br />
•Writing policy and procedures<br />
•Identifying target groups<br />
•Setting program priorities<br />
•Addressing the legal framework in SP&M<br />
•Establishing strategies for rolling out an SP&M program<br />
•Preparing a program action plan<br />
•Communicating the action plan<br />
•Conducting SP&M meetings<br />
•Training on SP&M<br />
•Counseling managers about succession planning problems<br />
in their areas
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C H A P T E R 5<br />
MAKING THE CASE FOR<br />
MAJOR CHANGE<br />
For many years, introducing and consolidating change has been a centerpiece<br />
of debate among managers and writers about management. Many believe that<br />
the essence of management’s job is to be instruments for progressive change—<br />
or, at least, to create an environment suitable for change.<br />
Establishing a systematic succession planning and management (SP&M)<br />
program in an organization that never had one is a major change effort. It<br />
requires a quantum leap from the status quo, what some call a ‘‘transformational<br />
change.’’ Success depends on demonstrating, at the outset, a need for<br />
change. The only exception is the rare case in which decision-makers have<br />
already reached a consensus to depart radically from past practice.<br />
To make the case for change in SP&M it will usually be necessary to:<br />
▲ Assess current problems and practices.<br />
▲ Demonstrate the need.<br />
▲ Determine organizational requirements.<br />
▲ Link SP&M to the strategic plan and human resource plan.<br />
▲ Benchmark SP&M processes in other organizations.<br />
▲ Obtain and build management commitment to systematic SP&M.<br />
These issues are the focus of this chapter. They may seem to be monumental<br />
issues—and sometimes they are—but addressing them is essential to lay a<br />
solid foundation on which to build a systematic SP&M program.<br />
Assessing Current Problems and Practices<br />
Information about current problems and practices is needed before it is possible<br />
to build a convincing case for change. Planning for the future requires<br />
information about the past and present.<br />
95
96 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Assessing Current Problems<br />
Crisis is a common impetus for change. As problems arise and are noticed,<br />
people naturally search for solutions. As the magnitude and severity of the<br />
problems increase, the search for a solution intensifies.<br />
The same principles apply to SP&M. If the organization has experienced no<br />
crises in finding qualified successors, retaining talented people, maintaining<br />
leadership continuity, or facilitating individual advancement, then few decision-makers<br />
will feel an urgent need to direct attention to these issues. On the<br />
other hand, SP&M is likely to attract increasing attention when problems like<br />
these surface:<br />
▲ Key positions are filled only after long delays.<br />
▲ Key positions can be filled only by hiring from outside.<br />
▲ Key positions have few people ‘‘ready now’’ to assume them (that is<br />
called weak bench strength).<br />
▲ Vacancies in key positions cannot be filled with confidence.<br />
▲ Key positions are subject to frequent or unexpected turnover.<br />
▲ Replacements for key positions are frequently unsuccessful in performing<br />
their new duties.<br />
▲ High performers or high-potential employees are leaving the organization<br />
in droves.<br />
▲ Individuals routinely leave the organization to advance professionally<br />
or to achieve their career goals.<br />
▲ Decision-makers complain about weak bench strength.<br />
▲ Employees complain that decisions about whom to advance are not<br />
based on who is best qualified but rather on caprice, nepotism, and<br />
personal favoritism.<br />
▲ Employees and decision-makers complain that decisions about whom<br />
to promote into key positions are adversely affected by discrimination<br />
or by expediency.<br />
To build a case for a systematic approach to SP&M, ask decision-makers if<br />
they face the problems listed above. Additionally, focus attention on identifying<br />
the most important problems the organization is facing and review how<br />
those problems are influenced by existing SP&M practices. If possible, document<br />
actual succession problems that have been experienced in the past—<br />
including ‘‘horror stories’’ (anecdotes about major problem situations) or<br />
‘‘war stories’’ (anecdotes about negative experiences), if possible. Although<br />
anecdotes do not necessarily provide an accurate indication of existing conditions,<br />
they can be powerfully persuasive and can help convince skeptical decision-makers<br />
that a problem warrants investigation. Use them to focus attention<br />
on the organization’s present SP&M practices—and, when appropriate, the
Making the Case for Major Change<br />
97<br />
need to change them from informal to systematic. Also, consider using approaches<br />
to identify and overcome objections to a SP&M program. (See Exhibit<br />
5-1.)<br />
In my 2004 survey, I asked the respondents to indicate whether SP&M had<br />
become more important to their organizations over the last few years. Their<br />
answers are revealing, indicating that many current problems have emerged<br />
that necessitate increased attention to SP&M. (See Exhibit 5-2.)<br />
Exhibit 5-1. Strategies for Handling Resistance to Implementing Succession<br />
Planning and Management<br />
Possible Cause of Resistance<br />
Managers or employees resist a<br />
SP&M program because they<br />
believe it will:<br />
Possible Strategies for Handling the Cause<br />
Mean that they have to give up Consider establishing a council to advise on<br />
something (such as a say in who matters related to the program.<br />
is promoted). Emphasize that organizational superiors of<br />
all individuals can and will be involved in<br />
making decisions.<br />
Require work for no reason Start by describing how and why other orga-<br />
(they see no need for it).<br />
nizations have used succession planning.<br />
Show reasons for the program that go beyond<br />
mere replacement planning and include<br />
individual development.<br />
Do more harm than good. Try to find out why managers and employees<br />
feel this way and ask for their advice about<br />
how to prevent abuses of the program.<br />
Be managed by people who are Hire an external consultant to establish the<br />
not trustworthy or managed in a framework for the program and isolate the<br />
way that is not ethical.<br />
nature of the possible concerns.<br />
Require too much time, effort, Explain what information is required to<br />
or resources.<br />
make SP&M useful and then seek the advice<br />
of those who resist the program on this basis<br />
by asking for their suggestions about the<br />
best ways to get that information.<br />
Double-check to determine whether you are<br />
recommending that the program be installed<br />
too quickly rather than gradually implemented.
98 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 5-2. The Importance of Succession Planning and Management<br />
Question: Has succession planning become more important to your organization<br />
over the last few years? If yes, briefly tell why; if no, briefly tell why.<br />
All respondents answered yes, and provided the following reasons:<br />
Leadership is the key to a healthy business in a ‘‘down’’ business environment.<br />
It has been added to the President’s Management Agenda.<br />
Board of directors requirements. It is now a corporate governance issue. Investors<br />
look for it.<br />
Because up to 1<br />
/3 of our employees will be eligible to retire within the next few<br />
years.<br />
The marketplace has changed and succession planning allows us to continue to<br />
grow.<br />
Turnover among execs participating in succession plans due to minimal executive<br />
openings.<br />
A large number of organizational employees are ready for retirement in five years.<br />
Source: William J. Rothwell, Results of a 2004 Survey on Succession Planning and Management Practices. Unpublished survey<br />
results (University Park, Penn.: The Pennsylvania State University, 2004).<br />
Assessing Current Practices<br />
In large organizations using an informal approach to SP&M, nobody is aware<br />
of the methods being used within the organization. Nor should they be. After<br />
all, in those settings SP&M is handled idiosyncratically—or not at all—by each<br />
manager. As a consequence, nobody is aware of the organization’s existing<br />
practices.<br />
A good place to start, then, is to find out what practices are currently being<br />
used in the organization. Exemplary, albeit isolated, approaches may already<br />
be in use, and they may serve as excellent starting points on which to begin a<br />
systematic approach. They enjoy the advantage of a track record because they<br />
have already been tried out in the organization and probably have one or more<br />
managers who support them.<br />
To emphasize this point, I am aware of one Fortune 500 corporation that<br />
uses an informal approach: Managers establish their own SP&M approaches as<br />
they feel they are warranted, and those activities vary dramatically. Most managers<br />
make no effort to conduct SP&M. As vacancies occur, replacements are<br />
frantically sought. Filling key positions is a crisis-oriented activity. (That is<br />
often true in organizations without systematic SP&M programs, as my 2004<br />
survey revealed; see Exhibit 5-3.)<br />
But even in this organization, one major operating division has established
Making the Case for Major Change<br />
99<br />
Exhibit 5-3. Making Decisions About Successors (in Organizations Without<br />
Systematic Succession Planning and Management)<br />
Question: How are decisions made about successors for positions in your organization?<br />
Circle all appropriate response codes below.<br />
Percentage<br />
Response<br />
We usually wait until positions are vacant and then scurry around<br />
madly to find successors. 21%<br />
We ‘‘secretly’’ prepare successors. 32%<br />
Whenever a position opens up, we rely on expediency to identify<br />
someone to fill it, hoping for the best. 37%<br />
Other Methods 11%<br />
Total 100%<br />
Source: William J. Rothwell, Results of a 2004 Survey on Succession Planning and Management Practices. Unpublished survey<br />
results (University Park, Penn.: The Pennsylvania State University, 2004).<br />
a practice of circulating a confidential memo each year to department managers<br />
to request their nominations for their own replacements. No attempt is<br />
made to verify that the candidates possess the requisite knowledge and skills<br />
suitable for advancement; no attempt is made to verify that the candidates are<br />
willing to accept new assignments; and no attempt is made to ensure their<br />
availability, if needed, or to prepare them for advancement. However, the practice<br />
of circulating a memo is an excellent place to start a systematic approach<br />
to SP&M. It can be a focal point to direct attention to the issue—and to the<br />
need to adopt a systematic approach.<br />
Use three approaches to assess the current status of SP&M in the organization:<br />
(1) talk to others informally; (2) send out an electronic mail question; or<br />
(3) conduct a written survey.<br />
Talk to Others Informally<br />
Ask key decision-makers how they are handling SP&M practices. Begin by talking<br />
to the chairman or chief executive officer, if possible, because that person<br />
is likely to be more aware of the processes than others. Then discuss the matter<br />
with other top managers. Pose questions such as the following:<br />
▲ How is the organization presently handling SP&M? What is being done<br />
at the highest levels? At the lower levels? In different divisions? In different<br />
locales?
100 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
▲ In your opinion, what should the organization be doing about<br />
SP&M—and why do you believe so?<br />
▲ What predictable losses of key personnel are anticipated in your area of<br />
responsibility? For example, how many pending retirements are you<br />
aware of? Will pending promotions lead to a domino effect in which a<br />
vacancy in one key position, filled by promotion from within, will set<br />
off a chain reaction that leads to a series of vacancies in many other<br />
positions?<br />
▲ What people or positions are absolutely critical to the continued successful<br />
operation of your division, function, department, or location?<br />
How would you handle the sudden and unexpected loss of a key person?<br />
Several key people?<br />
▲ Have you experienced the loss of a key person in the last year or two?<br />
How did you handle it? If you had to do it again, would you handle it<br />
the same way? If so, why? If not, why not?<br />
▲ What regular efforts, if any, do you make to identify possible replacements<br />
for key people or positions in your part of the organization? (For<br />
example, do you discuss this issue as part of management performance<br />
appraisals, during business planning activities, or in other ways?)<br />
▲ What efforts, if any, do you make to identify individuals with the potential<br />
to advance beyond their current positions?<br />
▲ How do you prepare individuals to advance when you perceive they<br />
have potential? What systematic efforts are made to train, educate, or<br />
develop them for future positions?<br />
▲ What strongly held beliefs do you have about SP&M? For instance, do<br />
you believe the organization should inform possible successors of their<br />
status (and thereby risk creating a crown prince problem) or conceal<br />
that information (and risk losing high-potential employees who are<br />
tapped for better advancement prospects elsewhere, perhaps by other<br />
organizations or even by competitors)? How do you believe the organization<br />
should handle plateaued workers, who will advance no further,<br />
and blocked workers, who are unable to advance beyond their current<br />
positions because they are blocked by plateaued workers above them?<br />
When you finish interviewing decision-makers, prepare a summary of the<br />
results about SP&M practices in the organization. Cite individual names only<br />
if given explicit permission to do so. Include a summary of current information<br />
on effective SP&M practices obtained externally—from sources such as this<br />
book—and then ask if more attention can be devoted to the topic. The reactions<br />
you receive should provide valuable clues to how much interest and<br />
support exists among key decision-makers to explore a systematic approach to<br />
SP&M.
Making the Case for Major Change<br />
101<br />
Send Out an Electronic Mail Question<br />
A top manager in a large corporation focused attention on systematic SP&M<br />
merely by sending out an e-mail message to his peers. He posed this question:<br />
‘‘Assume that you lost a key department manager on short notice through<br />
death or disability. (You can choose any department you wish.) Who is ‘‘ready’’<br />
to assume that position? Name anyone.’’<br />
That question provoked a flurry of responses. By merely posing this question,<br />
he served an important role as a change champion—and drew attention<br />
to weak bench strength in the organization’s supervisory ranks. Try the same<br />
approach in your organization—or find just one top manager who will pose a<br />
similar question to colleagues by e-mail. That will certainly draw attention to<br />
the issue. It may also open debate or create an impetus for change.<br />
Conduct a Written Survey<br />
A written survey may be used as an alternative to informal discussions. Unlike<br />
informal discussions, however, a written survey is a high-profile effort. Many<br />
people will probably see it. For that reason, be sure to follow the organization’s<br />
protocol for authorizing a written survey. That may mean discussing it,<br />
prior to distribution, with the CEO, the vice president of human resources, or<br />
others they suggest. Ask for their approval to conduct the survey—and solicit<br />
their input for questions of interest to them. In some organizations they may<br />
also wish to attach their own cover letters to the survey, which is desirable<br />
because it demonstrates their awareness and support—and may even increase<br />
the response rate.<br />
Use the survey appearing in Exhibit 5-4 as a starting point, if you wish. It<br />
may save you time in developing your own survey, tailor-made to your organization’s<br />
needs.<br />
Once the survey has been completed, feed the results back to the decisionmakers.<br />
In that way they can read for themselves what their peers have to say<br />
about the organization’s current approach to SP&M. That can help them focus<br />
on specific problems to be solved and on achieving a consensus for action<br />
among themselves. However, conducting surveys is not without risk. They<br />
may, for instance, bring to the surface influential opposition to a systematic<br />
SP&M program. That will make it more difficult to make the case for that approach<br />
in the future.<br />
Demonstrating the Need<br />
Few decision-makers are willing to invest time, money, or effort in any activity<br />
from which they believe few benefits will be derived. It is thus essential to tie<br />
SP&M issues directly to pressing organizational problems and to the organization’s<br />
core mission. But exactly how is that done?<br />
(text continues on page 104)
102 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 5-4. A Questionnaire for Assessing the Status of Succession<br />
Planning and Management in an Organization<br />
Cover Memo<br />
To: Top Managers of Corporation<br />
From:<br />
Subject: Survey on Succession Planning and Management Practices<br />
Date:<br />
Succession planning and management may be understood as ‘‘any effort designed<br />
to ensure the continued effective performance of an organization, division, department,<br />
or work group by making provision for the development, replacement, and<br />
strategic application of key people over time.’’ It may be systematic or informal. In<br />
systematic SP&M, an organization’s managers attempt to prepare successors for key<br />
positions; in informal succession planning, no effort is made to prepare successors—and,<br />
as vacancies occur in key positions, managers respond to the crises at<br />
that time.<br />
Please take a few minutes to respond to the questions appearing below. When you<br />
are finished, return the completed survey to (name) by(date) at(location). Should<br />
you have questions, feel free to call me at (phone number).<br />
Thank you for your cooperation!<br />
The Survey<br />
Directions: Please take a few minutes to write down your responses to each question<br />
appearing below. This questionnaire is intended to be anonymous, though you are<br />
free to sign your name if you wish. You will receive a confidential report that summarizes<br />
the key responses of all respondents and recommends action steps.<br />
1. In your opinion, how well is this organization presently conducting SP&M ?<br />
(Circle your response in the left column)<br />
Very Well<br />
Adequately<br />
Inadequately<br />
Very Poorly<br />
Briefly explain why you feel as you do:
Making the Case for Major Change<br />
103<br />
2. Should this organization establish/improve its approaches to SP&M?<br />
Yes<br />
Briefly explain why you feel as you do:<br />
No<br />
3. In your area of responsibility, have you established:<br />
(Circle your response in the center column below)<br />
Question<br />
Response<br />
Yes<br />
No<br />
A. A systematic means to identify pos- Yes No<br />
sible replacement needs stemming<br />
from retirement or other predictable<br />
losses of people?<br />
B. A systematic approach to perform- Yes No<br />
ance appraisal so as to clarify<br />
each individual’s current performance?<br />
C. A systematic approach to identify- Yes No<br />
ing individuals who have the potential<br />
to advance one or more<br />
levels beyond their current positions?<br />
D. A systematic approach by which to Yes No<br />
accelerate the development of individuals<br />
who have the potential to<br />
advance one or more levels beyond<br />
their current positions?<br />
E. A means by which to keep track of Yes No<br />
possible replacements by key position?<br />
Your Comments<br />
4. What special issues, if any, do you believe that a systematic SP&M program<br />
designed and introduced in this organization should be careful to address?<br />
(continues)
104 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 5-4. (continued)<br />
5. What other comments do you have to make about a systematic SP&M program?<br />
Please return the completed survey to (name)by(date)at(location). Should you<br />
have questions, feel free to call me at (phone number). You will receive a summary<br />
of the anonymous survey results by (date).<br />
Thank You for Your Cooperation!<br />
The answer to that question may vary across organizations. Each organization<br />
is unique; each organization has its own culture, history, and leadership<br />
group. But there are several possible ways by which to demonstrate the need<br />
for a systematic SP&M program. They are described below.<br />
Hitchhiking on Crises<br />
The first way to demonstrate need is to hitchhike on crises. As key positions<br />
become vacant or key people depart unexpectedly, seize that opportunity to<br />
poll decision-makers informally. Begin by summarizing the recent crisis. Contrast<br />
what happened with what could have happened if a systematic approach<br />
to SP&M had been used. Describe the impact of poorly planned SP&M on<br />
customers and employees, if possible. Then describe possible future conditions—especially<br />
future staffing needs that may result from recent downsizing,<br />
early retirement offers, or employee buyouts. Ask decision-makers whether<br />
they believe it is time to explore a systematic approach to meeting succession<br />
needs. Then be ready to offer a concrete proposal for the next steps to take.<br />
Seizing Opportunities<br />
A second way to demonstrate need is to seize opportunities. In one organization,<br />
for example, the human resources department studied top managers’<br />
ages and projected retirement dates. The results were astonishing: all the top<br />
managers were due to retire within five years and no replacements had been<br />
identified or developed. In that case, the HR department detected a brewing<br />
crisis and helped avert it. The organization subsequently established a systematic<br />
SP&M program that enjoyed strong support—and great success.<br />
Any major strategic change will normally create opportunities. For instance,<br />
as electrical utilities are deregulated, decision-makers realize that the<br />
future success (and even survival) of these organizations often depends on<br />
identifying and developing new leaders who can thrive in a highly competitive,<br />
market-driven environment. That raises questions about the developmental
Making the Case for Major Change<br />
105<br />
needs of successors who had been nurtured during a period of regulation. It<br />
also prompts developmental activities to increase the market-oriented skills of<br />
future leaders.<br />
Use the worksheet appearing in Exhibit 5-5 to focus attention on ways to<br />
hitchhike on crises and to seize opportunities.<br />
Showing the Bottom-Line Value<br />
A third way to demonstrate the need for a systematic SP&M program might be<br />
called showing the bottom-line value. However, making that case for SP&M<br />
can be tough to do. As Jac Fitz-enz writes:<br />
One of the difficulties in trying to measure the<br />
work of planners is that their output is primarily<br />
a plan of the future. By definition, we will<br />
not know for 1, 3 or perhaps 5 years how accurate<br />
their predictions were. In addition no<br />
one is capable of predicting future events,<br />
and therefore it is not fair to blame the planner<br />
for unforeseeable events. It is impossible<br />
to measure the value of a long-term plan in the<br />
short term. Planners thus often feel frustrated<br />
because they cannot prove their worth with<br />
concrete evidence. 1<br />
Those involved in succession planning and management may feel that they<br />
face exactly the same frustrations to which Fitz-enz alludes. However, he has<br />
suggested ways to measure each of the following:<br />
▲ Workload (How many positions need to be filled?)<br />
▲ Speed of Filling Positions (How long does it take to fill positions?)<br />
▲ Results (How many positions were filled over a given time span?)<br />
Succession planning and management may thus be measured by the number<br />
of key positions to be filled, the length of time required to fill them, and<br />
the number of key positions filled over a given time span. Of course, these<br />
measures are not directly tied to such bottom-line results for an organization<br />
as return on equity, return on investment, or cost-benefit analysis. But they are<br />
good places to start.<br />
As Fitz-enz rightly points out, the central questions to consider when quantifying<br />
program results are these 2 :
106 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 5-5. A Worksheet for Demonstrating the Need for Succession<br />
Planning and Management<br />
Directions: How can the need for a systematic SP&M program be demonstrated in<br />
an organization? Use the questions below to help you organize your thinking. Answer<br />
each question in the space appearing below it. Then compare your responses<br />
to those of others in the organization. Add paper if necessary.<br />
1. What crises, if any, have occurred in placing high-potential individuals or filling<br />
key positions in recent years? Describe the situations and how the organization<br />
coped with them. Then describe what happened (the outcomes of those strategies).<br />
Make a list of the crises, if any, and briefly describe:<br />
2. What opportunities, if any, have you noticed that may affect the knowledge,<br />
skills, and abilities that will be needed by workers in the organization in the<br />
future? (In particular, list strategic changes and then draw conclusions about<br />
their implications for knowledge, skills, and abilities.)<br />
Describe how those strategic changes are likely to af-<br />
fect the knowledge, skills, and abilities needed by<br />
workers in the organization in the future:<br />
Make a list of<br />
strategic changes:<br />
▲ What variables are really important to the organization?<br />
▲ What results can be influenced by action?<br />
Meaningful, quantifiable results can be obtained only by focusing attention<br />
directly on answering these questions. Decision-makers must be asked what<br />
they believe to be the most important variables and actions that can be taken<br />
by the organization. This information, then, becomes the basis for establishing<br />
the financial benefits of an SP&M program.<br />
When measuring SP&M results, decision-makers may choose to focus on<br />
such issues as these:<br />
▲ How long does it take to fill key positions? (Measure the average elapsed<br />
days per position vacancy.)
Making the Case for Major Change<br />
107<br />
▲ What percentage of key positions are actually filled from within? (Divide<br />
the number of key positions filled from within by the total number of<br />
key positions.)<br />
▲ What percentage of key positions are capable of being filled from<br />
within? (Divide the number of high-potential workers available by the<br />
number of expected key position vacancies annually.)<br />
▲ What is the percentage of successful replacements out of all replacements?<br />
(Divide the number of retained replacements in key positions<br />
by all replacements made to key positions.)<br />
Of course, issues of importance to top managers, and appropriate measures<br />
of bottom-line results, will vary across organizations. The point is that these<br />
issues must be identified before appropriate criteria and bottom-line measures<br />
can be assigned. Indeed, the best ways to measure SP&M results come from<br />
the goals and objectives established for the SP&M program.<br />
Another way to view the bottom-line measure of a SP&M program is to<br />
compare the expenses of operating the program to the benefits accruing from<br />
it. That may be difficult, but it is not impossible to do. As a first step, identify<br />
direct and indirect program expenses. Direct expenses result solely from operating<br />
an SP&M program. An example might be the salary of a full- or parttime<br />
SP&M coordinator. Indirect expenses result only partially from program<br />
operations. They may include partial salary expenses for managers involved in<br />
developing future leaders or the cost of materials to develop high potentials.<br />
As a second step, identify direct and indirect program benefits. (This can<br />
be tricky, but the key to success is involving decision-makers so that they accept<br />
and have ownership in the program benefits that are claimed.) Direct<br />
benefits are quantifiable and financially oriented. They might include savings<br />
in the fees of search firms. Indirect benefits might include the goodwill of<br />
having immediate successors prepared to step in, temporarily or permanently,<br />
whenever vacancies occur in key positions.<br />
As a third step, compare the costs and benefits. Will the organization gain<br />
financially if a systematic approach to SP&M is adopted? In what ways? How<br />
can the relative effectiveness of the program be related directly to the organization’s<br />
pressing business issues and core mission?<br />
For additional information on cost-benefit analysis, review the numerous<br />
approaches that have been suggested for evaluating the bottom-line value of<br />
training programs. 3 Use those approaches to clarify costs and benefits of a<br />
systematic SP&M program.<br />
Of course, other ways—apart from hitchhiking on crises, seizing opportunities,<br />
and showing the cost-benefit ratio for program operations—might be<br />
used to demonstrate the need for a systematic approach to SP&M. Consider:<br />
How has the need been successfully demonstrated for other new programs in<br />
the organization? Can similar approaches be used to demonstrate a need for a<br />
systematic SP&M program?
108 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Determining Organizational Requirements<br />
All organizations do not share identical requirements for SP&M programs. Differences<br />
exist owing to the organization’s industry, size, stage of maturity,<br />
management values, internally available expertise, cost, time, and other considerations.<br />
Past surveys confirm that these issues—and others—can affect the<br />
appropriate design of SP&M programs. 4<br />
However, top management goals are always key considerations. What do<br />
top managers believe to be essential for a SP&M program? The most important<br />
questions on which to focus attention might include the following:<br />
▲ How eager are top managers and other decision-makers to systematize<br />
the organization’s SP&M process(es)?<br />
▲ How much time and attention are decision-makers willing to devote to<br />
assessing key position requirements? Identifying leadership competencies?<br />
Identifying success factors for advancement in the organization?<br />
Conducting multirater assessments? Appraising individual performance?<br />
Preparing and implementing individual development plans (IDPs)<br />
to ensure the efficient preparation of individuals for advancement into<br />
key positions?<br />
▲ How stable is the current organizational structure? Work processes? Can<br />
either—or both—be reliably used to plan for leadership continuity or<br />
replacements?<br />
▲ How willing are decision-makers to devote resources to cultivating talent<br />
from within?<br />
▲ How much do decision-makers prefer to fill key position vacancies from<br />
inside rather than from outside the organization?<br />
▲ How willing are decision-makers to use innovative alternatives to simple<br />
replacements from within?<br />
Begin determining the essential requirements of an SP&M program by interviewing<br />
top managers. Pose the questions appearing above. Add others as pertinent<br />
to the organization. (As a starting point, use the interview guide<br />
appearing in Exhibit 5-6 for this purpose.) Then prepare and circulate a written<br />
proposal for an SP&M program that conforms to the consensus opinion of<br />
key decision-makers.<br />
Linking Succession Planning and Management Activities to<br />
Organizational and Human Resource Strategy<br />
Succession planning and management should be linked to organizational and<br />
human resource strategy. However, achieving those linkages can be difficult.
Making the Case for Major Change<br />
109<br />
Exhibit 5-6. An Interview Guide for Determining the Requirements for a<br />
Succession Planning and Management Program<br />
Directions: Use this interview guide to help you formulate the requirements for a<br />
systematic SP&M program for an organization. Arrange to meet with top managers<br />
in your organization. Pose the questions appearing in the left column below. Record<br />
notes in the right column below. Then use the results of the interview as the basis for<br />
preparing a proposal for a systematic SP&M program for the organization. (You<br />
may add questions to the left column, if you wish.)<br />
Questions<br />
1. What are your thoughts about approaching<br />
succession planning and management in this<br />
organization in a planned way?<br />
Notes on Responses<br />
2. How should we define key positions in this organization?<br />
3. How should we clarify the requirements to<br />
qualify for key positions? (Some people call<br />
these competencies—characteristics of successful<br />
performers.)<br />
4. How should we assess current individual job<br />
performance?<br />
5. How stable do you believe the current organizational<br />
structure to be? Will it be adequate to<br />
use as the basis for identifying key positions requiring<br />
successors in the future?<br />
(continues)
110 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 5-6. (continued)<br />
Questions<br />
6. How do we determine the qualifications or requirements<br />
(competencies) for each key position<br />
in the future?<br />
Notes on Responses<br />
7. How do you feel that we can identify individuals<br />
who have the potential to meet the qualifications<br />
for key positions in the future?<br />
8. What do you believe are the essential resources<br />
that must be provided by the organization<br />
in order to accelerate the development of<br />
high-potential employees?<br />
9. How should we keep track of high-potential<br />
employees?<br />
10. What other thoughts do you have about the<br />
essential requirements for an effective succession<br />
planning and management program in<br />
this organization? Why do you believe they are<br />
essential?
Making the Case for Major Change<br />
111<br />
Linking Organizational Strategy and Succession Planning and<br />
Management<br />
Organizational strategy refers to the way in which a business chooses to compete.<br />
Important steps in the process include: (1) determining the organization’s<br />
purpose, goals, and objectives; (2) scanning the external environment<br />
to identify future threats and opportunities; (3) appraising the organization’s<br />
present strengths and weaknesses; (4) examining the range of strategies; (5)<br />
choosing a strategy that is likely to seize maximum advantage from future opportunities<br />
by building on organizational strengths; (6) implementing strategy,<br />
particularly through changes in structure, policy, leadership, and rewards; and<br />
(7) evaluating strategy periodically to assess how well it is helping the organization<br />
to achieve its strategic goals and objectives.<br />
Achieving effective linkage between organizational strategy and SP&M is<br />
difficult for three major reasons. First, while effective strategy implementation<br />
depends on having the right people in the right places at the right times, it is<br />
not always clear who the right people are, where the right places are, and<br />
when those people will be needed. Second, strategy is frequently expressed in<br />
a way that does not lend itself easily to developing action plans for SP&M. For<br />
instance, decision-makers may focus attention on ‘‘increasing market share’’<br />
or ‘‘increasing return-on-investment’’—without describing what kind of leadership<br />
will be needed to achieve those ambitious goals. Third, organizational<br />
strategy as practiced may differ from organizational strategy as theorized, 5<br />
which complicates the process of matching leadership to strategy. That can<br />
happen when the daily decisions do not match written organizational strategy.<br />
To overcome these problems, decision-makers must take active steps to<br />
build consideration of SP&M issues into the formulation of strategic plans.<br />
During the review of organizational strengths and weaknesses, for instance,<br />
decision-makers should consider the organization’s leadership talent. What<br />
kind of expertise is presently available? During strategic choice and implementation,<br />
decision-makers should also consider whether the organization has the<br />
right talent to ‘‘make it happen.’’ Who possesses the knowledge and skills<br />
that will contribute most effectively to making the strategy a reality? How can<br />
individuals be developed to help them acquire that knowledge and those<br />
skills? How can the organization establish an action plan to manage its human<br />
assets as effectively as its financial assets? Only by answering these questions—<br />
and taking active steps to narrow the gap between available and necessary<br />
talent—can the organization link its strategy and its succession planning and<br />
management.<br />
Linking Human Resource Strategy and Succession Planning and<br />
Management<br />
Human resource strategy is the means that the organization chooses to make<br />
the most effective use of its HR programs and activities to satisfy organizational
112 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
needs. Important steps in this process parallel those in organizational strategy<br />
making: (1) determining the purpose, goals, and objectives of the HR function;<br />
(2) scanning the external environment to identify future threats and opportunities<br />
affecting HR inside and outside the organization; (3) appraising the organization’s<br />
present HR strengths and weaknesses; (4) examining the range of<br />
HR strategies available; (5) choosing an HR strategy that is likely to support<br />
the organizational strategy; (6) implementing HR strategy through changes in<br />
such programs as training, selection, compensation, benefits, and labor relations;<br />
and (7) evaluating HR strategy periodically for how well it supports organizational<br />
strategy.<br />
Unfortunately, efforts to integrate HR strategy and organizational strategy<br />
have met with only mixed success. As Golden and Ramanujam write, ‘‘the<br />
lack of integration between human resource management (HRM) and strategic<br />
business planning (SBP) processes is increasingly acknowledged as a major<br />
source of implementation failures. It is often alleged that companies develop<br />
strategic plans based on extensive marketing and financial data but neglect the<br />
human resource requirements necessary to successfully implement them.’’ 6<br />
Numerous theories have been developed over the years to identify ways to<br />
link organizational and HR strategy. 7 However, little evidence exists to show<br />
that great strides have been made in this area. 8<br />
To link HR planning and SP&M, decision-makers should examine how well<br />
HR policies and practices help—or hinder—leadership continuity, individual<br />
advancement, and the cultivation of internal talent. More specifically:<br />
▲ How does the organization conduct recruitment, selection, and placement?<br />
How much consideration is given during this process to longterm<br />
retention and development of prospective or new employees?<br />
▲ How does the organization conduct training, education, and development?<br />
How much (relative) attention is given to the long-term cultivation<br />
of employee talent—as opposed to focusing attention on training<br />
individuals to meet immediate requirements?<br />
▲ How well do existing compensation and benefit practices support internal<br />
placement? Transfers? Promotions? Are actual disincentives established<br />
to dissuade employees from wanting to accept promotions or<br />
assume leadership roles?<br />
▲ How do existing labor relations agreements affect the organization’s<br />
promotion, rotation, transfer, and other employment practices?<br />
To integrate HR strategy and SP&M, examine existing HR program efforts—<br />
such as selection, training, compensation, and benefits—against succession<br />
planning and management needs. Identify HR practices that could encourage<br />
or that presently discourage effective SP&M. Then take active steps to ensure<br />
that HR practices facilitate, and do not impede, long-term efforts to groom<br />
talent from within.
Making the Case for Major Change<br />
113<br />
Benchmarking Best Practices and Common Business<br />
Practices in Other Organizations<br />
Discussions with top managers and other key decision-makers in an organization<br />
should yield valuable information about the needs that an SP&M program<br />
should meet. But that information can be supplemented by benchmarking<br />
SP&M practices in other organizations. Moreover, the results of benchmarking<br />
may intensify the interests of key decision-makers in SP&M because they may<br />
demonstrate that other organizations are using better, or more effective, methods.<br />
As Robert C. Camp explains, ‘‘Only the approach of establishing operating<br />
targets and productivity programs based on industry best practices leads to<br />
superior performance. That process, being used increasingly in U.S. business,<br />
is known as benchmarking.’’ 9<br />
Benchmarking has also surfaced in recent years as a powerful tool for improving<br />
organizational work processes and is frequently associated with Total<br />
Quality Management (TQM). Its primary value is to provide fresh perspectives,<br />
and points for comparison, from other organizations. It can thereby accelerate<br />
the process of introducing a state-of-the-art program by comparing existing<br />
practices in one organization to the best practices already in use elsewhere.<br />
Although there are various means by which to conduct benchmarking,<br />
Camp suggests that it should be carried out in the following way 10 :<br />
1. Identify what is to be benchmarked.<br />
2. Identify comparative companies.<br />
3. Determine a data collection method and collect data.<br />
4. Determine the current performance ‘‘gap.’’<br />
5. Project future performance levels.<br />
6. Communicate benchmark findings and gain acceptance.<br />
7. Establish functional goals (based on the results of the benchmarking<br />
study).<br />
8. Develop action plans (based on the results of the benchmarking<br />
study).<br />
9. Implement specific actions and monitor progress.<br />
10. Recalibrate benchmarks.<br />
Typically, then, benchmarking begins when decision-makers make a commitment.<br />
They clarify their objectives and draft questions to which they seek<br />
answers. Comparable organizations, often but not always in the same industry,<br />
are chosen. A suitable data collection method is selected, and written questionnaires<br />
and interview guides are frequently used for data collection. Site<br />
visits (field trips) are arranged to one or more organizations identified as being<br />
‘‘best-in-class.’’
114 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Benchmarking should not be pursued as a ‘‘fishing expedition’’; rather, it<br />
should be guided by specific objectives and questions. Participants should start<br />
out with some familiarity with the process, such as succession planning and<br />
management practices. (That may mean that they have to be briefed before<br />
participating in a site visit.) Several key decision-makers should go on the site<br />
visits so they can compare practices in other organizations with their own.<br />
That is an excellent way, too, to win over skeptics and demonstrate that ‘‘the<br />
way we have always done it here’’ may not be the best approach.<br />
Most Fortune 500 companies are well known for their effective succession<br />
planning and management practices. Blue-chip firms such as Motorola, Xerox,<br />
IBM, AT&T, General Electric, Coca-Cola, and General Motors—among others—are<br />
recognized for conducting effective succession planning and management.<br />
They may rightly be considered ‘‘best-in-class’’ companies. Appropriate<br />
contacts at these organizations should be located through such professional<br />
societies as the Human Resource Planning Society (P.O. Box 2553, Grand Central<br />
Station, New York, NY 10163), the American Management Association<br />
(1601 Broadway, New York, NY 10019), the American Society for Training and<br />
Development (1640 King Street, Alexandria, VA 22313), or the Society for<br />
Human Resource Management (606 N. Washington Street, Alexandria, VA<br />
22314).<br />
Always develop questions before making a site visit. (See the list of possible<br />
benchmarking questions in Exhibit 5-7.) Then contact representatives from<br />
two or three of those organizations and ask if benchmarking visits to their<br />
locations are possible. If so, send them the questions in advance of the visit so<br />
that they have time to prepare their responses. Sometimes they may wish to<br />
see the questions in advance before they commit to a visit.<br />
It may be difficult to arrange benchmarking visits on SP&M. Many organizations<br />
consider the process sensitive to their operations—and revealing of their<br />
corporate strategies. Consequently, one approach is to seek access to organizations<br />
where you or others in your company have personal contacts. If necessary,<br />
begin with local organizations that have successfully established SP&M<br />
programs. Identify them by talking to your peers in local chapters of the American<br />
Society for Training and Development (ASTD), the Society for Human Resource<br />
Management (SHRM), or other professional societies.<br />
Obtaining and Building Management Commitment<br />
Securing management commitment to systematic SP&M may not occur rapidly.<br />
Skeptics are difficult to convince in short order. It will take time and proof<br />
of tangible evidence of success to win them over.<br />
Opinions About Succession Planning and Management<br />
My 2004 survey of SP&M practices revealed sharp disparities in opinions about<br />
systematic SP&M programs. Examine Exhibit 5-8. Then consider how you<br />
(text continues on page 118)
Making the Case for Major Change<br />
115<br />
Exhibit 5-7. An Interview Guide for Benchmarking Succession Planning and<br />
Management Practices<br />
Directions: Use this interview guide to help you prepare questions in advance of a<br />
benchmarking visit to another organization. Share these questions before your visit<br />
to an organization known for its effective SP&M practices. (Add questions as appropriate<br />
for your organization.) Pose the questions appearing in the left column below.<br />
Then record notes in the right column. Use the results in formulating a proposal for<br />
improving SP&M practices in your organization.<br />
Questions<br />
1. What mission statement has been established<br />
for succession planning and management in<br />
your organization?<br />
Notes on Responses<br />
2. What goals and objectives have been established<br />
for succession planning and management<br />
in your organization?<br />
3. What policy and philosophy statement has<br />
been written to guide succession planning and<br />
management in your organization? (Would it<br />
be possible to obtain a copy?)<br />
4. How does your organization define key positions?<br />
What positions, if any, are given special<br />
attention in your succession planning program?<br />
Why are they given that attention?<br />
(continues)
116 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 5-7. (continued)<br />
5. How does your organization identify, describe,<br />
or clarify the requirements of key positions?<br />
(For example, has your organization made an<br />
effort to identify job responsibilities, competencies,<br />
or success factors by level?)<br />
6. How does your organization assess current job<br />
performance for succession planning and<br />
management purposes? (Do you use the organization’s<br />
existing performance appraisal system—or<br />
something else?)<br />
7. Does your organization use replacement charts<br />
based on the current organization chart? (If<br />
not, why?)<br />
8. How does your organization determine the<br />
qualifications, requirements, or competencies<br />
for each key position in the future?<br />
9. How does your organization attempt to integrate<br />
succession planning and management<br />
with organizational strategy? With human resource<br />
strategy?
Making the Case for Major Change<br />
117<br />
Questions<br />
10. How does your organization identify successors<br />
for key positions?<br />
Notes on Responses<br />
11. How does your organization identify highpotential<br />
employees (who are capable of<br />
advancing two or more levels beyond their<br />
current placement)?<br />
12. How does your organization establish Individual<br />
Development Plans (IDPs) to plan, guide,<br />
and accelerate the development of high-potential<br />
employees?<br />
13. What special programs, if any, has your organization<br />
established to accelerate the development<br />
of high-potentials?<br />
14. What special computer software, if any, does<br />
your organization use in its succession planning<br />
and management activities? Why was it<br />
chosen?<br />
15. How does your organization evaluate the results<br />
of succession planning and management<br />
activities?<br />
(continues)
118 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 5-7. (continued)<br />
16. What special problems has your organization<br />
encountered with succession planning and<br />
management? How have those been solved?<br />
Exhibit 5-8. Opinions of Top Managers About Succession Planning and<br />
Management<br />
Question: How would you summarize the opinions of top managers in your organization<br />
about a succession planning program? Circle all response codes below that<br />
apply.<br />
Opinions of Top Management<br />
Percentage Response<br />
They don’t believe succession planning is worth<br />
the time required for it. 9%<br />
They have no clue why such a program might<br />
be worthwhile. 9%<br />
They believe that a succession planning program<br />
is worthwhile but are not aware of how to<br />
manage it efficiently and effectively. 55%<br />
They believe a succession planning program is<br />
worthwhile and that a formal program is better<br />
than an informal program. 27%<br />
I don’t know what they think about a succession<br />
planning program. - 0 -<br />
Other Comments<br />
None<br />
Total 100%<br />
Source: William J. Rothwell, Results of a 2004 Survey on Succession Planning and Management Practices. Unpublished survey<br />
results (University Park, Penn.: The Pennsylvania State University, 2004).<br />
would answer those questions about top management opinions in your organization.<br />
Turn then to Exhibit 5-9 and consider how you would characterize<br />
your own opinions about systematic SP&M.<br />
Understanding How to Secure Management Commitment<br />
To understand how to secure management commitment, Diane Dormant’s<br />
classic ABCD model remains a helpful tool. 11 ABCD is an acronym based on
Making the Case for Major Change<br />
119<br />
Exhibit 5-9. Opinions of Human Resource Professionals About Succession<br />
Planning and Management<br />
Question: How would you summarize your opinions about a succession planning<br />
program? Circle all response codes below that apply.<br />
Your Opinions<br />
Percentage Response<br />
I don’t believe such a program is important. - 0 -<br />
I believe that other methods work better in identifying and<br />
preparing possible successors. - 0 -<br />
I believe a succession planning program is worthwhile but<br />
other programs are more important for this organization<br />
right now. - 0 -<br />
I believe a succession planning program is important. 36%<br />
Succession planning is critically important to this organization<br />
at this time. 64%<br />
Other Opinions<br />
None<br />
Total 100%<br />
Source: William J. Rothwell, Results of a 2004 Survey on Succession Planning and Management Practices. Unpublished survey<br />
results (University Park, Penn.: The Pennsylvania State University, 2004).<br />
the first letter of several key words. Dormant’s model suggests that large-scale<br />
organizational change—such as the introduction of a systematic SP&M program—can<br />
be understood by examining adopters (who is affected by the<br />
change?), blackbox (what is the change process?), change agent (who is making<br />
the change?), and domain (the change context). 12<br />
The most valuable feature of Dormant’s model is her view that different<br />
strategies are appropriate at different stages in the introduction of a change.<br />
The change agent should thus, to facilitate change, take actions that are keyed<br />
to the adopter’s stage in accepting an innovation.<br />
Dormant believes that adopters progress through five identifiable stages in<br />
accepting an innovation. 13 During the first stage—awareness—adopters have<br />
little information about the innovation. They are passive and are generally<br />
unwilling to seek information. In that stage, change agents should advertise<br />
the innovation, making efforts to attract attention and provide positive information.<br />
In the second stage—self-concern—adopters are more active. They express<br />
concern about how they will be individually affected by a change and pose<br />
questions about the consequences of an innovation. Change agents in this<br />
stage should enact the role of counselor, answering questions and providing<br />
relevant information.
120 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
In mental tryout—the third stage—adopters remain active and ask pointed<br />
questions related to their own applications of an innovation. Change agents<br />
should enact the role of demonstrators, providing relevant examples and demonstrating<br />
to adopters how they may apply an innovation to their unique situations.<br />
In hands-on trial—the fourth stage—adopters are interested in learning<br />
how to apply an innovation to their own situations. Their opinions about the<br />
innovation are being formed from personal experience. Change agents should<br />
provide them with training and detailed feedback about how well they are<br />
applying the innovation. Testimonials of success will be persuasive during this<br />
stage, helping to shape the conclusions reached by the adopters about an innovation.<br />
Adoption is the fifth and final stage. By this point adopters have integrated<br />
the innovation into their work and are interested in specific problem solving<br />
that is related to their own applications. Change agents should provide personal<br />
support, help adopters find the resources they need to perform effectively,<br />
and provide rewards for successful implementation.<br />
Applying these stages to the process of obtaining and building management<br />
support for systematic SP&M should be apparent. The appropriate strategies<br />
that change agents should use depend on the stage of acceptance. (See<br />
Exhibit 5-10.)<br />
An important point to bear in mind is that a succession planning program<br />
will be effective only when it enjoys support from its stakeholders. Indeed, the<br />
stakeholders must perform SP&M for it to work. In short, they must own the<br />
process. Hence, obtaining and building management commitment to SP&M is<br />
essential for a systematic program to work.<br />
The Key Role of the CEO in the Succession Effort<br />
The CEO’s role in the SP&M process is the key to success—or failure—in private-sector<br />
organizations. Let me state it clearly: It is a make-or-break role.<br />
While it may seem that CEOs are asked to be ‘‘involved’’ in everything, which<br />
is sometimes interpreted to mean ‘‘give lip service to it and then delegate it,’’<br />
SP&M does not fall in that category. To put it in blunt terms, if the CEO is not<br />
hands-on involved in leading the succession effort, it will fail. SP&M cannot be<br />
just delegated to the HR department, for the simple reason that HR cannot<br />
hold senior executives accountable for talent development in the same way<br />
that the CEO can. Well-known CEOs like former G.E. Chairman Jack Welch<br />
devote much of their time to thinking about, and acting on, succession issues.<br />
14<br />
Fortunately, several factors have come together to put SP&M on the CEO’s<br />
personal radar screen. One factor is that boards of directors are becoming<br />
more involved with succession. Consider:
Making the Case for Major Change<br />
121<br />
Exhibit 5-10. Actions to Build Management Commitment to Succession<br />
Planning and Management<br />
Stage of Acceptance<br />
Appropriate Actions<br />
Awareness Advertise SP&M to management employees.<br />
Provide general information about SP&M.<br />
Self-Concern Answer questions.<br />
Provide relevant information.<br />
Mental Tryout Provide relevant examples of applications of<br />
SP&M policy/practices to specific functions or activities<br />
within the organization.<br />
Demonstrate how SP&M may be used in each organizational<br />
area.<br />
Hands-on Trial Offer training on SP&M.<br />
Meet with top managers individually to discuss SP&M<br />
in their areas.<br />
Collect and disseminate testimonials of success.<br />
Adoption Provide personal support to top managers on applications<br />
of systematic SP&M.<br />
Help program users perform effectively through individualized<br />
feedback and counseling.<br />
Identify appropriate rewards for SP&M.<br />
Succession planning has become the second<br />
most important topic discussed by boards.<br />
(Top of the list is making sure that the right<br />
chief executive is in place to begin with.) The<br />
frequency with which chief executives come<br />
and go adds to the pressure. The average<br />
chief executive’s tenure has dwindled in the<br />
past decade from eight years to less than five.<br />
That leaves little time to groom the next generation.<br />
Big companies rarely pick from outside.<br />
To do so is usually a sign that they are in<br />
trouble. For the board, drawing up a succession<br />
plan is a good way to spot future problems.<br />
But there are advantages for the boss,<br />
too. After all, one way to secure a sort of immortality<br />
is to pick one’s own successor. In<br />
most companies, the succession process is<br />
controlled mainly by the chief executive.
122 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
However, many CEOs are uncooperative,<br />
partly because they hate the idea of retirement.<br />
Even Disney now listens. Sarah Teslik, executive<br />
director of the Council of Institutional<br />
Investors, a lobbying group, says that she has<br />
demanded for years that Disney draw up a<br />
succession plan, but Michael Eisner, the company’s<br />
domineering CEO, has refused to<br />
allow it. When she talked to senior Disney executives<br />
two months ago, they assured her<br />
that a plan now existed—although they refused<br />
to say what it is. Ms. Teslik thinks that<br />
behavior has been changed by the insistence<br />
in the Sarbanes-Oxley Act that boards meet<br />
in ‘‘executive session’’—that is, without the<br />
executives present. ‘‘I personally asked Mr.<br />
Sarbanes for this provision for that purpose,’’<br />
she recalls. ‘‘How can directors talk about<br />
your succession while you are in the room?’’ 15<br />
A new survey of boardroom practice by Korn/Ferry International, another<br />
search consultancy, finds that only 33 percent of boards had a management<br />
succession committee or process in 2001. By this year, that had leapt to 77<br />
percent.<br />
A second factor is that aging senior executives have placed personal pressure<br />
on CEOs to pay attention to succession, lest they find themselves saddled<br />
with the workload of a retiring senior executive while harried HR staff try<br />
to source a qualified replacement. A third factor is that terrorism has made<br />
succession a prudent risk-management issue—one sure to be brought up by<br />
increasingly cautious auditors.<br />
But what exactly should CEOs do? Here are some practical suggestions:<br />
1. Discuss the issue with the board, his or her key reports, and the VP of<br />
HR to decide what succession program would be most desirable for the<br />
organization. Of course, that information can be gathered by an external<br />
consultant—often a good idea—and then handed to the CEO in a<br />
report that recommends actions and next steps.<br />
2. Become familiar enough with issues associated with succession to be<br />
able to discuss the topic intelligently. That includes otherwise arcane<br />
topics—to CEOs at least—such as competency modeling.<br />
3. Insist on an action plan that senior executives can buy into.<br />
4. Hold senior executives accountable for grooming talent in their divisions<br />
and departments, perhaps by changing the executive bonus plan
Making the Case for Major Change<br />
123<br />
to put a portion of the bonus at risk for making or not making measurable<br />
goals for talent development.<br />
5. Chair periodic meetings of senior executives to discuss how they are<br />
grooming talent—and especially HiPos—in their areas.<br />
Of course, there is much more that CEOs can do. But they must be convinced<br />
of the importance of SP&M to do anything. Just to provide a basis for reflection,<br />
rate your CEO on his or her role in SP&M, using the simple rating sheet<br />
in Exhibit 5-11.<br />
Summary<br />
When preparing to introduce a systematic succession planning program, begin<br />
by assessing the organization’s current succession planning and management<br />
problems and practices, demonstrating the business need for succession planning<br />
and management, determining the organization’s unique succession<br />
planning and management requirements, linking the succession planning and<br />
management program to the organization’s strategic plans and human resource<br />
plans, benchmarking succession planning and management processes<br />
in other organizations, and obtaining and building management commitment.<br />
This chapter has reviewed these steps and thereby demonstrated ways by<br />
which to make the case for change. The next chapter emphasizes the importance<br />
of clarifying the roles of each level of management in the succession<br />
planning and management program; developing a program mission statement,<br />
policy, and philosophy; identifying target groups; and setting program<br />
priorities.
124 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 5-11. Rating Your CEO for His/Her Role in Succession Planning<br />
and Management<br />
Directions: For each item listed in the left column below, check a box in the right<br />
column to indicate whether your organization’s CEO is actively performing successfully.<br />
Be honest.<br />
The CEO of My Organization: Yes No<br />
Takes a hands-on approach to succession issues. <br />
Sets a positive example by choosing his or her own <br />
successor.<br />
Sets a positive example by developing his or her own <br />
successor.<br />
Considers succession issues whenever he or she <br />
makes business decisions of strategic import.<br />
Discusses his or her thinking about succession issues <br />
with others.<br />
Holds managers accountable for succession issues. <br />
Holds managers accountable for developing talent. <br />
Rewards managers for developing talent. <br />
Chairs ‘‘talent shows’’ of the organization in which <br />
the developmental needs of promising people are<br />
discussed and by which senior managers are held accountable<br />
for developing the people they have.<br />
Total Score Number Number<br />
(Add up the yes and no boxes and then insert the of Yes of No<br />
sums where indicated at right. Obviously, the more Boxes Boxes<br />
yes boxes your CEO has, the closer his/her role is to<br />
being successfully engaged in the succession planning<br />
and management efforts of your organization.)
C H A P T E R 6<br />
STARTING A SYSTEMATIC PROGRAM<br />
An organization should be ready to start a systematic succession planning and<br />
management (SP&M) program once the case has been persuasively made that<br />
one is needed. Starting a systematic SP&M program usually involves taking<br />
such actions as conducting a risk analysis and building a commitment to<br />
change; determining roles in the SP&M program; formulating a mission statement;<br />
writing a program policy; clarifying the procedures; identifying groups<br />
targeted for action; defining the roles in the SP&M program of the CEO, senior<br />
managers, and others; and setting program priorities. This chapter focuses on<br />
these issues.<br />
Conducting a Risk Analysis and Building a Commitment<br />
to Change<br />
Where do an organization’s leaders begin in conducting a risk analysis? In<br />
building a commitment to change? Those are, of course, related questions.<br />
A risk analysis is simply an assessment of what level of risk an organization<br />
faces owing to the loss of key people. (Key people exist at all levels and not<br />
just at the top.) The risk analysis is conducted in one of several ways. For<br />
example, one way has been mentioned earlier in this book. First, the organization’s<br />
payroll system is used to project the estimated dates of retirement<br />
eligibility for the entire workforce. Second, the percentage of the whole organization<br />
eligible for retirement over rolling three-year periods is assessed.<br />
Third, the same analysis is done by job code, geographical location, functional<br />
area or department, and hierarchical level. The aim is to cast a wide net, looking<br />
for trouble spots where high percentages of a whole group, such as the<br />
entire accounting department or the St. Louis office, for example, would be<br />
eligible for retirement during a given three-year period. Use three-year periods<br />
because problems may not be apparent in a single year. But if the cumulative<br />
percentage of the retirement-eligible workforce over a rolling three-year period<br />
is high—say, over 50 percent—then you can mark it as a trouble spot and<br />
move on.<br />
The goal of this exercise is to find parts of the organization where the risks<br />
125
126 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
are the highest of losing people. While skeptical managers may not see a need<br />
for a succession program for an entire organization, they can be convinced to<br />
do something if they see a high percentage of the entire workforce or those in<br />
one area are affected.<br />
There are other ways to do risk analysis. Sometimes they can be just as<br />
effective and persuasive to decision-makers. For instance:<br />
▲ Do ‘‘what if’’ scenarios. Pose questions to decision-makers: How long<br />
would it take to replace a key person owing to sudden death, disability, or<br />
resignation? And what would the organization do in the meantime to ensure<br />
that the work gets done? Ask decision-makers to estimate the economic or<br />
other impacts that would result from the sudden loss of a key person at any<br />
level.<br />
▲ Do historical studies. Look to the past. Ask what key people losses have<br />
been experienced by the organization in the past and how they were handled.<br />
(I have found that the sudden loss of a handpicked successor for the CEO’s<br />
job is sometimes a most persuasive way to launch an SP&M program, for the<br />
simple reason that the CEO feels the pain personally and will not suffer in<br />
silence for long.)<br />
▲ Build awareness. Prepare a simple visual aid with the organization chart<br />
showing, in red, the percentage of people at risk of loss owing to retirement;<br />
prepare another visual aid that shows the years of experience at risk of loss in<br />
key departments.<br />
Other approaches to building persuasive cases for action are possible. Data<br />
and measurements can help. Just think—what data are most likely to convince<br />
decision-makers of the need to establish a succession program, and how can<br />
that data be gathered? Then set out to collect that information, analyze it, and<br />
present it to decision-makers. Do not forget, however, that decision-makers,<br />
once convinced of the need for action, will expect you to have in hand an<br />
action plan or series of recommendations about how to establish the SP&M<br />
program.<br />
Clarifying Program Roles<br />
What are roles? How can roles in an SP&M program be clarified so that organizational<br />
members know what they should do to support the effort? This section<br />
answers these questions.<br />
Understanding Roles<br />
A role is an expected pattern of behaviors and is usually linked to a job in<br />
the organization. Although most organizations outline responsibilities in job<br />
descriptions, few job descriptions are sufficiently detailed to clarify how job<br />
incumbents should carry out their duties or interact with others. However,
Starting a Systematic Program<br />
127<br />
roles do permit such clarification. Indeed, ‘‘a role may include attitudes and<br />
values as well as specific kinds of behavior. It is what an individual must do in<br />
order to validate his or her occupancy of a particular position.’’ 1<br />
Role theory occupies a central place in writings about management and<br />
organizations. Internalizing a role has often been compared to the communication<br />
process. (See Exhibit 6-1.) Role senders (role incumbents) bring to their<br />
roles expectations about what they should do, how they should do it, and how<br />
they should interact with others. Their expectations are influenced by their<br />
previous education, experience, values, and background. They are also influenced<br />
by what they are told about the role during the recruitment, training,<br />
and selection process. Role receivers—others in the organization with whom<br />
role senders interact—observe these behaviors and draw conclusions from<br />
them based on their own expectations. They provide feedback to indicate<br />
whether the behavior matches what they expect. That feedback, in turn, may<br />
affect the role senders’ expectations and behaviors.<br />
To complicate matters, individuals enact more than one role in organizations.<br />
For instance, they may serve as superiors, colleagues, and subordinates.<br />
They may also enact roles outside the organization, such as spouse, parent,<br />
child, citizen, churchgoer, or professional. Each role may carry its own culturally<br />
bound expectations for behavior.<br />
Enacting multiple roles can lead to role conflict. For example, supervisors<br />
may be expected by their employers to act in the best interests of the organization.<br />
That means they must occasionally make hard-eyed business decisions.<br />
On the other hand, supervisors may also be expected to represent the interests<br />
and concerns of their subordinates to the employer. To cite another example,<br />
human resource managers may perceive their role to be facilitative and feel<br />
that they should provide advice to operating managers when they decide HR<br />
issues. But operating managers may expect them to act forcefully and proac-<br />
Exhibit 6-1. A Model for Conceptualizing Role Theory<br />
Role senders<br />
(with<br />
internalized<br />
expectations<br />
about their<br />
role).<br />
Take<br />
action.<br />
Role receivers<br />
(with<br />
internalized<br />
expectations<br />
for the role).<br />
Interpret<br />
action.<br />
Provide<br />
feedback<br />
about match<br />
or mismatch<br />
with role<br />
expectations.<br />
Feedback may change role senders' expectations.
128 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
tively on their own, spearheading new initiatives and taking steps to avert<br />
future HR problems. In both examples, conflicting expectations may lead role<br />
incumbents to experience pressure and frustration. Effective performance is<br />
influenced by congruence in role expectations. Role senders can achieve desired<br />
results only when they know what they are expected to do and when<br />
role receivers make their expectations clear.<br />
Applying Role Theory to Succession Planning and Management<br />
As role theory indicates, performance is influenced by shared role expectations.<br />
As one step in establishing systematic SP&M, clarify program roles so<br />
that individuals throughout the organization are aware of what they are expected<br />
to do and how they are expected to behave.<br />
At the outset, direct attention to the roles to be enacted by three important<br />
groups: (1) management employees, (2) program facilitators, and (3) program<br />
participants. These roles may overlap. In each case, however, it is important to<br />
bring to the surface what group members already believe about their roles in<br />
SP&M, feed that information back to them, provide information about alternative<br />
roles, and seek consensus on desirable roles.<br />
Think of the roles of management employees as ranging along one continuum<br />
from active to passive and along another continuum from supporter to<br />
opponent. (See the grid in Exhibit 6-2 to help conceptualize those roles.) Management<br />
employees who take an active role believe that SP&M should occupy<br />
much of their time. They should be defining present work requirements,<br />
planning for future work requirements, appraising individual performance,<br />
assessing individual potential, planning for individual development, and participating<br />
in developmental activities. On the other hand, management employees<br />
who take a passive role believe that issues other than SP&M should<br />
occupy their time. A supporter sees systematic SP&M as a valuable activity; an<br />
opponent has reservations about it.<br />
Think of facilitators’ roles as ranging along a continuum from directive to<br />
nondirective. Facilitators who take a directive role indicate what they expect<br />
from those participating in a systematic SP&M program. They then attempt to<br />
enforce these expectations, providing briefings, training, or written directions<br />
to help others understand what they are supposed to do. Operating managers<br />
and top managers who are assigned responsibilities as SP&M coordinators may<br />
adopt that role, particularly during the start-up phase when many may be confused<br />
about what they are supposed to do.<br />
On the other hand, facilitators who take a nondirective role attempt to<br />
identify what various stakeholders want from the program and what behaviors<br />
the stakeholders believe to be associated with those desired program results.<br />
They collect information from stakeholders, feed it back to them, and help<br />
them establish their own roles and action plans. Much time may be spent
Starting a Systematic Program<br />
129<br />
Exhibit 6-2. Management Roles in Succession Planning and Management:<br />
A Grid<br />
Active Champions succession Opposes succession<br />
planning efforts vigor- planning vigorously.<br />
ously. Views management’s<br />
Level of Views management’s role as one geared to<br />
Effort role as one geared to making profits—even<br />
developing and motiva- when that means demotting<br />
people.<br />
ivating people.<br />
Passive Expresses general sup- Prefers to devote time to<br />
port for succession plan- other activities.<br />
ning, with reservations<br />
about some approaches.<br />
Wishes more ‘‘study’’<br />
and ‘‘analysis’’ to be<br />
conducted.<br />
Supporter<br />
Level of Support<br />
Opponent<br />
individually, helping managers and employees at different levels understand<br />
what their roles should be.<br />
Participant roles range along one continuum from aware to unaware and<br />
along another continuum from organizationally focused to personally/individually<br />
focused. Participants are defined as those tapped by the organization to<br />
be involved in the SP&M process. They are usually designated to be developed<br />
for one or more future positions. They may be aware or unaware that they<br />
have been thus designated by the organization as possible successors. They<br />
may be focused on satisfying their personal needs in the future (an individual<br />
focus) or on satisfying the organization’s needs (an organizational focus).<br />
To clarify roles, ask managers, facilitators, and participants to answer the<br />
following questions:<br />
▲ What are you presently doing to help the organization meet its succession<br />
needs in the future?<br />
▲ What should you do to help the organization establish a systematic<br />
SP&M program to meet succession needs in the future?<br />
▲ What do you believe should be the role(s) of managers and employees<br />
in supporting an effective SP&M program in the organization?<br />
Pose these questions in group or staff meetings or circulate written surveys as<br />
appropriate. (If neither approach will work owing to a desire to keep an
130 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
SP&M program ‘‘secret,’’ then ask top managers these questions and ask how<br />
roles to support SP&M may be clarified at other levels in the organization.)<br />
Formulating a Mission Statement<br />
Why is an organization undertaking a systematic succession planning program?<br />
What outcomes do stakeholder groups desire from it? These questions should<br />
be answered during the program start-up phase in order to achieve agreement<br />
among stakeholders about the program’s purpose and desired results.<br />
The lack of a mission statement has been called the Achilles’ heel of SP&M<br />
programs. As Walter R. Mahler and Stephen J. Drotter have pointed out years<br />
ago, these programs have too often been established without careful thought<br />
given to purpose or desired outcomes. ‘‘Company after company,’’ they write,<br />
‘‘rushed into program mechanics. Time went by and disillusionment set in.<br />
The programs did not live up to their promises.’’ 2 The reason for this, they<br />
believe, is that the program mission was never adequately clarified at the<br />
outset.<br />
What Is a Mission Statement?<br />
A mission statement describes the purpose of a program or the reason for its<br />
existence. Sometimes it is called a purpose statement. Mission and purpose<br />
may be regarded as synonymous.<br />
Formulating a mission statement is a first step in organizational planning.<br />
Writers on organizational strategy suggest that formulating an organizational<br />
mission should precede formulating strategy. An organizational mission statement<br />
answers such questions as these: Why is the organization in business?<br />
What results is it trying to achieve? What market does it serve? What products<br />
or services does it offer?<br />
Mission statements may also be formulated for organizational functions<br />
(such as operations, finance, marketing, or personnel), divisions, locations, or<br />
activities. At levels below the organization, mission statements for functions,<br />
divisions, locations, or activities should answer such questions as these:<br />
▲ Why does the function, division, location, or activity exist?<br />
▲ How does it contribute to achieving the organization’s mission? Its strategic<br />
plans?<br />
▲ What outcomes or results are expected from it?<br />
Mission statements may also provide philosophical statements (What do we<br />
believe?), product or service descriptions (What is to be made or sold?), customer<br />
descriptions (Whose needs are to be served?), and rationale (Why is the<br />
mission worth performing?).
Starting a Systematic Program<br />
131<br />
What Questions Should Be Answered by a Mission Statement?<br />
Like any organizational effort, an SP&M program should have a mission statement<br />
to explain why it exists, what outcomes are desired from it, why those<br />
outcomes are valuable, what products or services will be offered, who will be<br />
served by the program, and other issues of importance. However, mission<br />
statements for SP&M programs will vary across organizations. After all, not all<br />
programs are designed to serve the same purpose, achieve the same results,<br />
or offer the same products or services. So what specific issues should be addressed<br />
in a mission statement for an SP&M program?<br />
One way to begin to answer that question is to focus on issues of particular<br />
importance to the organization. In that way, decision-makers will formulate<br />
the program’s mission. Such issues may include:<br />
1. What is a key position?<br />
2. What is the definition of a high potential (HiPo)?<br />
3. What is the organization’s responsibility in identifying HiPos, and what<br />
should it be?<br />
4. What is the definition of an exemplary performer?<br />
5. What is the organization’s responsibility in identifying and rewarding<br />
exemplary performers? What should it be?<br />
6. How should the organization fill key positions?<br />
7. What percentage of vacancies in key positions should be filled from<br />
within? From outside? Handled through other means?<br />
8. What percentage of key positions should have at least one identifiable<br />
backup (successor)?<br />
9. In what percentage of key positions should there be holes (that is, no<br />
designated successors)?<br />
10. What is the maximum time that exemplary performers should remain<br />
in their positions?<br />
11. What should be the maximum allowable percentage of avoidable turnover<br />
among high potentials? Exemplary performers? What should be<br />
done to reduce it?<br />
12. What should be the maximum allowable percentage of failures in key<br />
positions after individual advancement?<br />
13. What percentage of key positions should be filled with employees<br />
from legally protected labor groups—such as women, minorities, and<br />
the disabled?<br />
14. How desirable are international assignments for designated successors?<br />
15. How should HiPos be prepared for advancement?<br />
16. What should be the role and responsibility of each employee and the<br />
HR department in the process of developing HiPos?
132 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
17. How much should individual career goals be exposed, considered,<br />
and tracked in succession planning?<br />
18. How openly should the organization communicate with individuals<br />
who are identified to be HiPos about their status?<br />
Of course, additional questions may also be posed to help clarify program<br />
purpose. Use the Worksheet appearing in Exhibit 6-3 to help clarify the mission<br />
of SP&M in an organization.<br />
How Is a Mission Statement Prepared?<br />
Prepare a mission statement by using any one of at least three possible approaches:<br />
‘‘Ask, formulate, and establish’’; ‘‘Recommend and listen’’; or ‘‘Facilitate<br />
an interactive debate.’’ In the ‘‘Ask, formulate, and establish’’ approach,<br />
someone takes an initial step by ‘‘asking’’ questions about succession planning<br />
in the organization. That launches a dialog to establish the program mission.<br />
Often that duty falls to human resource generalists, human resource development<br />
specialists, or management development specialists, although others—<br />
such as the CEO, a vice president of human resources, or a specially appointed<br />
SP&M coordinator—could function as change champions to focus attention<br />
on the need for change. As a second step, change champions should compile<br />
the answers received from different decision-makers. They should then ‘‘formulate’’<br />
and circulate a proposal based on those answers. As a third and final<br />
step, decision-makers hammer out their own responses, using the proposal as<br />
a starting point. In so doing, they establish a mission statement for an SP&M<br />
program.<br />
A key advantage of this approach is that it requires little initial effort from<br />
busy top managers. Others undertake the groundbreaking work to collect information<br />
about SP&M, compile it, and base recommendations on it. (That is<br />
what officers in the armed services call ‘‘staff work.’’) On the other hand, a<br />
key disadvantage of this approach is that executives do not participate in the<br />
information-gathering process, so they will have no collective ownership in<br />
the results. A subsequent step is thus required to capture their support and<br />
thereby achieve consensus on the necessary actions to take.<br />
The ‘‘Recommend and listen’’ approach is different. It relies on considerable<br />
expertise by the HR generalists, HRD specialists, or management and leadership<br />
development specialists. To use this approach, they must start out with<br />
a thorough grasp of the organization’s culture, top management desires and<br />
values, and state-of-the-art SP&M practices. From that perspective, they ‘‘recommend’’<br />
a starting point for the program, providing their own initial answers<br />
to the key questions about the program mission listed in Exhibit 6-3. They<br />
prepare and circulate their recommendations for a systematic SP&M program,<br />
usually in proposal form. They then ‘‘listen’’ to reactions from key decision-
Starting a Systematic Program<br />
133<br />
Exhibit 6-3. A Worksheet to Formulate a Mission Statement for<br />
Succession Planning and Management<br />
Directions: Use this worksheet to help you formulate the mission of the succession<br />
planning and management (SP&M) program in your organization. For each question<br />
posed in the left column, write an answer in the right column. When you finish,<br />
circulate the worksheet among decision-makers. Compile their responses and then<br />
feed them back as a catalyst for subsequent decision making about the mission<br />
statement of the succession planning and management program in the organization.<br />
Add paper or questions appropriate to your organization as necessary.<br />
Questions<br />
1. What is a key position?<br />
2. What is the definition of a highpotential<br />
(HiPo)?<br />
3. What is the organization’s responsibility<br />
in identifying HiPos, and what<br />
should it be?<br />
4. What is the definition of an exemplary<br />
performer?<br />
5. What is the organization’s responsibility<br />
in identifying and rewarding<br />
exemplary performers? What<br />
should it be?<br />
6. How should the organization fill key<br />
positions?<br />
7. What percentage of vacancies in<br />
key positions should be filled from<br />
within? From without? Handled<br />
through other means?<br />
8. What percentage of key positions<br />
should have at least one identifiable<br />
backup (successor)?<br />
9. In what percentage of key positions<br />
should there be holes (that is, no<br />
designated successors)?<br />
Answers<br />
(continues)
134 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 6-3. (continued)<br />
Questions<br />
10. What is the maximum time that exemplary<br />
performers should remain<br />
in their positions?<br />
Answers<br />
11. What should be the maximum allowable<br />
percentage of avoidable<br />
turnover among high-potentials?<br />
Exemplary performers? What<br />
should be done to reduce it?<br />
12. What should be the maximum allowable<br />
percentage of failures in<br />
key positions after individual advancement?<br />
13. What percentage of key positions<br />
should be filled with employees<br />
from legally protected labor<br />
groups—such as women, minorities,<br />
and the disabled?<br />
14. How desirable are international assignments<br />
for designated successors?<br />
15. How should HiPos be prepared for<br />
advancement?<br />
16. What should be the role and responsibility<br />
of each employee and<br />
the HR Department in the process<br />
of developing HiPos?<br />
17. How much should individual career<br />
goals be surfaced, considered, and<br />
tracked in succession planning?<br />
18. How openly should the organization<br />
communicate with individuals<br />
who are identified to be HiPos<br />
about their status?
Starting a Systematic Program<br />
135<br />
19. Write a draft mission statement for<br />
the succession planning and management<br />
program of the organization<br />
in this space. Be sure to answer<br />
these questions: (1) Why does the<br />
program exist? (2) How does it contribute<br />
to achieving the organization’s<br />
mission and strategic plans?<br />
and (3) What measurable outcomes<br />
or results should be expected<br />
from it?<br />
makers, using the initial proposal as a catalyst to stimulate debate and discussion.<br />
The advantage of this approach is that it usually has a shorter cycle time<br />
than ‘‘Ask, formulate, and establish.’’ It also relies more heavily on expert information<br />
about state-of-the-art SP&M practices outside the organization,<br />
thereby avoiding a tendency to reinvent the wheel. But these advantages exist<br />
only when those using the approach have a thorough grasp of the organization’s<br />
current SP&M problems and practices, culture, decision-maker<br />
preferences, and state-of-the-art practices. Otherwise, it can provoke timeconsuming<br />
conflicts among decision-makers that will only prolong efforts to<br />
achieve top-level consensus.<br />
The most complex approach is to ‘‘Facilitate an interactive debate.’’ HR<br />
generalists, HRD specialists, management and leadership development specialists,<br />
or others function as group facilitators rather than as expert-consultants.<br />
The first step is to prepare a forum for key decision-makers to carry out<br />
an ‘‘interactive debate’’ about the SP&M program’s mission. While the forum’s<br />
content may be dictated by the CEO—or even by members of the board of<br />
directors—HR professionals set up the process for the debate. (Content refers<br />
to the issues on which the forum will focus; process refers to the means by<br />
which those issues will be examined.) That usually means that the CEO and<br />
the HR professional (or the CEO and an external facilitator) must work closely<br />
together to plot the best means by which to explore the most important succession<br />
planning and management issues. Such a debate may take the form of<br />
an off-site retreat lasting several days or several meetings spread across several<br />
months. During the debate, top-level decision-makers work through numerous<br />
small-group activities to clarify the mission, philosophy, and procedures<br />
governing the SP&M program.<br />
The second step is to summarize the results. Someone must prepare a<br />
written statement that contains key points of agreement after the retreat or<br />
after each meeting. That task usually falls to an HR professional or to an external<br />
facilitator, who prepares a presentation or handout. However, the CEO<br />
or other top-level decision-makers feed these key points back to the retreat<br />
participants.
136 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
The third and final step is to conduct follow-up activities to ensure agreement.<br />
Follow-up activities may be conducted in several ways. One way is to<br />
hold a follow-up meeting with the participants to surface any points of confusion<br />
or disagreement. This can be done in small groups (at the end of a retreat)<br />
or individually with participants (after the retreat). Another way is to establish<br />
a top-level committee to govern SP&M in the organization and/or at various<br />
levels or locations of the organization.<br />
An interactive debate does focus initial attention on key issues that should<br />
be addressed to formulate a clear program mission statement. That is an advantage<br />
of the approach. But it also requires much time and strong personal<br />
involvement from the CEO and others. That is its chief disadvantage.<br />
Writing Policy and Procedures<br />
Why is the organization undertaking an SP&M program? What results are desired<br />
from it? How can consistent program operations be ensured? Decisionmakers<br />
may answer these questions by preparing written program policy and<br />
procedures.<br />
What Is a Succession Planning and Management Policy, and What Are<br />
Succession Planning and Management Procedures?<br />
Policy is a natural outgrowth of mission. Typically stated in writing, it places<br />
the organization on record as supporting or opposing an approach to action.<br />
Procedures flow from policy and provide guidelines for applying it. Writing a<br />
policy on SP&M clarifies what the organization seeks to do; writing procedures<br />
clarifies how the policy will be applied. Typical components of an SP&M policy<br />
include a mission statement, philosophical statements, and procedures. A sample<br />
SP&M policy appears in Exhibit 6-4.<br />
How Are Policies and Procedures Written?<br />
Succession planning and management policy and procedures should usually<br />
be written only after decision-makers agree on program mission and goals.<br />
Crises, problems, or issues of importance should provide clues about what to<br />
include in the policy and procedures, and they will usually be implicit in the<br />
mission. As decision-makers prepare a mission statement they will typically<br />
consider what may be rightfully included in a written program policy and procedure.<br />
In many cases, the appropriate approach to use in writing policies and<br />
procedures stems from the approach used in preparing the mission statement.<br />
For instance, if an ‘‘Ask and formulate’’ approach was used in formulating<br />
the mission statement, then prepare a draft SP&M policy and procedures to
Starting a Systematic Program<br />
137<br />
Exhibit 6-4. A Sample Succession Planning and Management Policy<br />
Mission Statement<br />
The purpose of the succession planning and management program in [company or<br />
organization name] is to ensure a ready supply of internal talent for key positions at<br />
all times. This organization is fully committed to equal employment opportunity for<br />
all employees, regardless of race, creed, sex, national origin, sexual orientation, or<br />
disability.<br />
Policy and Philosophy<br />
It is the policy of the [company or organization name] to help employees develop to<br />
the full extent of their potential and, to the extent possible for the organization, to<br />
help them achieve realistic career goals that satisfy both individual and organizational<br />
requirements.<br />
This organization is firmly committed to promotion from within, whenever qualified<br />
talent is available, for key positions. This organization is also firmly committed to<br />
helping employees develop their potential so that they are prepared and qualified<br />
to assume positions in line with individual career goals and organizational requirements.<br />
Procedures<br />
At least once each year, the organization will sponsor:<br />
A replacement planning activity that will assess how well the organization is<br />
positioned to meet replacement requirements by promotions or other personnel<br />
movements from within.<br />
Individual performance appraisal to assess how well individuals are meeting<br />
their current job requirements.<br />
Individual potential assessment to assess how well individuals are presently<br />
equipped for future advancement. Unlike performance appraisal—which is<br />
typically focused on past or present performance—the focus of individual<br />
potential assessment will be on the future.<br />
Individual development planning to provide the means for action plans to<br />
help individuals narrow the developmental gap between what they already<br />
know or can do and what they must know or do to qualify for advancement.<br />
The succession planning and management program will rely heavily on the processes<br />
listed above to identify individuals suitable for advancement. The program will<br />
work closely in tandem with an in-house career planning program, which is designed<br />
to help individuals identify their career goals and take proactive steps to<br />
achieve them.
138 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
accompany the proposal submitted to executives. If a ‘‘Recommend and listen’’<br />
approach was chosen, then draft an SP&M policy and procedures to accompany<br />
the mission statement in the initial proposal to management. If the<br />
approach chosen was to ‘‘Facilitate an interactive debate,’’ then committees in<br />
the organization will usually be the means by which to draft policy and procedures,<br />
oversee refinements, and issue updates or modifications to policy and<br />
procedures.<br />
Identifying Target Groups<br />
Who should be the focus of the SP&M program? Should the program be geared<br />
to top-level executive ranks only? Should it encompass other groups, levels, or<br />
parts of the organization? Answering these questions requires decision-makers<br />
to identify target groups.<br />
Most of what has been written about SP&M programs has directed attention<br />
to replacing top-level executive positions. Substantial research has been<br />
conducted on SP&M for the CEO 3 ; other writings have focused on the CEO’s<br />
immediate reports. Relatively little has been written about SP&M for other<br />
groups, though many experts on the subject concede that the need has never<br />
been greater for effective SP&M efforts at lower levels. Indeed, interest in<br />
multiskilled, team-based management and cross-training stems from the recognition<br />
that more time, resources, and attention must be focused on systematically<br />
developing human capabilities at all levels and across all groups.<br />
The results of my 2004 survey on SP&M practices revealed that the respondents’<br />
organizations are not consistently identifying and developing successors.<br />
(See Exhibit 6-5.)<br />
Establishing Initial Targets<br />
Where exactly is the organization weakest in bench strength? The answer to<br />
that question should provide a clue about where to establish initial targets for<br />
the SP&M program. (See the activity in Exhibit 6-6. If necessary, circulate it to<br />
top managers or ask them to complete it in an initial program kickoff meeting<br />
or mission statement retreat.)<br />
Direct attention to three specific areas first, since they are a common<br />
source of problems: successors for top management positions; successors for<br />
first-line supervisory positions; and successors for unique, tough-to-fill technical<br />
or professional positions.<br />
Top management positions are fewest in absolute numbers, but they are<br />
often critically important for formulating and implementing organizational<br />
strategy. They may grow weak in bench strength in organizations that experience<br />
significant employee reductions in the middle management ranks as a<br />
result of forced layoffs, employee buyouts, or early retirement offers.
Starting a Systematic Program<br />
139<br />
Exhibit 6-5. Targeted Groups for Succession Planning and Management<br />
Succession planning may not be carried out with all groups in an organization. For<br />
each group listed below, indicate whether your organization makes a deliberate<br />
effort to identify and develop successors.<br />
Does Your<br />
Does Your<br />
Organization Make a Organization Make a<br />
Deliberate Effort to Deliberate Effort to<br />
Identify Successors in Develop Successors in<br />
This Group?<br />
This Group?<br />
Group (Percentage Response) (Percentage Response)<br />
Yes No Yes No<br />
A Executives 89% 11% 100% 0%<br />
B Middle Managers 67% 33% 56% 44%<br />
C Supervisors 44% 56% 56% 44%<br />
D Professionals 33% 67% 22% 78%<br />
E<br />
Technical Workers<br />
(Engineers, Computer<br />
Specialists) 11% 89% 11% 89%<br />
F Sales Workers 22% 78% 22% 78%<br />
G<br />
H<br />
Clerical and<br />
Secretarial Workers 11% 89% 22% 78%<br />
Hourly Production or<br />
Service Workers 22% 78% 33% 67%<br />
Source: William J. Rothwell, Results of a 2004 Survey on Succession Planning and Management Practices. Unpublished survey<br />
results (University Park, Penn.: The Pennsylvania State University, 2004).<br />
Supervisory positions are largest in absolute numbers, so continuing turnover<br />
and other personnel movements leave these ranks subject to the greatest<br />
need for replacements. As a port of entry to the management ranks, supervision<br />
is also critically important because many middle managers and executives<br />
start out in the supervisory ranks. Supervisors are often promoted from the<br />
hourly ranks, lacking management experience, or are hired from outside the<br />
organization. They are areas of weakness in organizations that have not<br />
planned management-development programs or that provide little or no<br />
incentive for movement into supervision—such as organizations in which unionized<br />
hourly workers earn substantially more than supervisors, who are ineligible<br />
for overtime pay but must work overtime anyway.
140 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 6-6. An Activity for Identifying Initial Targets for Succession<br />
Planning and Management Activities<br />
Directions: Use this activity to identify initial target groups for the SP&M program in<br />
an organization. For each job category listed in the left column below, list the priority<br />
(1 highest priority) order in the center column. Then, in the right column, briefly<br />
explain why the job category was assigned that level of priority. Circulate this activity<br />
to decision-makers and ask them to complete it. Compile the results and feed them<br />
back to decision-makers to emphasize what job categories were generally perceived<br />
to be the rightful target for the SP&M program. Add paper as necessary. (If appropriate,<br />
modify the list of job categories so they coincide precisely with any special<br />
labels/titles associated with them in the organization.)<br />
List by<br />
Priority Order<br />
Job Category (1 Highest) What Is Your Reasoning?<br />
1. Executives<br />
2. Individuals Preparing<br />
for Executive Positions<br />
3. Middle Managers<br />
4. Individuals Preparing<br />
for Middle Management<br />
5. Supervisors<br />
6. Individuals Preparing<br />
for Supervision<br />
7. Professional Workers<br />
8. Individuals Preparing to<br />
Be Professional<br />
Workers<br />
9. Technical Workers<br />
10. Individuals Preparing to<br />
Become Technical<br />
Workers<br />
11. Sales Workers<br />
12. Individuals Preparing to<br />
Become Sales Workers<br />
13. Clerical Workers
Starting a Systematic Program<br />
141<br />
14. Individuals Preparing to<br />
Become Clerical<br />
Workers<br />
15. Hourly Production or<br />
Service Workers<br />
16. Individuals Preparing to<br />
Become Hourly Production<br />
or Service Workers<br />
17. Other Job Categories<br />
Tough-to-fill technical or professional positions are often limited in number.<br />
Managers may be kept awake at night, tossing and turning, at the mere<br />
thought of losing a member of this group because recruiting or training a<br />
successor on short notice is difficult or nearly impossible. Choose one<br />
group—or all three—as initial targets for the SP&M program if the results of<br />
the activity in Exhibit 6-6 demonstrate the need. Otherwise, use the results of<br />
the activity in Exhibit 6-6 to identify the initial targets for the program. Verify<br />
the groups chosen with decision-makers.<br />
Expanding Succession Planning and Management to Other Groups<br />
Although the organization may have neither the time nor the resources to<br />
establish a systematic SP&M program that encompasses all people and positions,<br />
decision-makers may agree that such a goal is worth achieving eventually.<br />
For that reason, periodically administer Exhibit 6-6 to decision-makers<br />
to assess which groups should be targeted for inclusion and in what priority<br />
order.<br />
Of course, decision-makers may wish to prioritize groups in ways other<br />
than by job category. For instance, they may feel that bench strength is weakest<br />
in any of the following areas:<br />
▲ Geographical Locations<br />
▲ Product or Service Lines<br />
▲ Functions of Organizational Operation<br />
▲ Experience with Specific Industry-Related or Product/Service-Related<br />
Problems<br />
▲ Experience with International Markets<br />
Ask decision-makers about where they perceive the organization to be weak<br />
in bench strength. Then target the SP&M program initially to improve bench
142 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
strength at that level. While continuing efforts at that level, gradually extend<br />
the effort to include other groups.<br />
Clarifying the Roles of the CEO, Senior Managers, and<br />
Others<br />
What roles should be played in the SP&M program by the CEO, senior managers,<br />
the HR program, individuals, and other groups?<br />
The Roles of the CEO and Other Senior Managers<br />
As noted in Chapter 5, the CEO’s role in the success of an effective SP&M<br />
program is a make-or-break proposition. If he or she is willing to provide<br />
hands-on involvement, the program begins with an excellent chance of success.<br />
On the other hand, if he or she classifies SP&M as something that everyone<br />
else should do, then the program begins with the hallmarks of a disaster<br />
in the making. This is because only the CEO can hold other senior executives<br />
accountable for grooming talent, and only he or she can reward or punish<br />
them for their results. The VP of HR cannot do that.<br />
An excellent starting point is to sit down with the CEO and ask, ‘‘What role<br />
do you want to play in SP&M, and why do you want to play that role?’’ It also<br />
helps to ask, ‘‘What results do you want to see from the SP&M program, and<br />
what role do you think you should play in helping to achieve those results?’’<br />
From the answers to that, HR staff or others may prepare a role description of<br />
what part the CEO wants to play. The same approach may be used with other<br />
senior managers. By clarifying expected roles—and the actions associated with<br />
them—accountability is being established.<br />
The Role of the HR Department<br />
What should be the role of the HR department in the SP&M effort? The reality<br />
is that many roles are possible. And if the role of HR is not clarified, it can<br />
wreak havoc on the effort as expectations clash with realities.<br />
In most organizations, including best-practice firms, HR’s role is a coordinative<br />
one. While that term coordinative may be a mouthful, it basically means<br />
that: (1) someone within HR is given responsibility for collecting information<br />
and following up to gather information for the SP&M effort; (2) the HR function<br />
must supply the technology to support data gathering about individuals,<br />
organizational needs, present and future competencies, present performance<br />
and future potential, individual development plans, competency development<br />
strategies, and so on.<br />
A common problem in starting SP&M programs is that HR has no staff<br />
available, or at least staff with sufficient credibility, to assign. Another problem
Starting a Systematic Program<br />
143<br />
is that the HR function is lacking in what might be called the infrastructure to<br />
support a succession program. Infrastructure means that nothing exists to<br />
support the succession effort—no technology, no competency models, no<br />
working performance management systems, no 360-degree assessment tools<br />
(or other methods of assessing potential), no individual development plans<br />
(IDPs), or anything else that will be needed for a good effort.<br />
There is no simple solution to this problem. Someone must be assigned<br />
the responsibility—someone who is an exemplary performer in HR, perhaps<br />
even a HiPo, since that person must have credibility with the CEO, senior<br />
managers, and even board of director members. That HR person must then<br />
receive training on succession. While many HR people end up self-taught on<br />
this topic, it is still helpful to send the assigned person to whatever training<br />
might be available on succession.<br />
TheRoleofIndividuals<br />
Of course, other useful questions to ask—and ones that are too often lost in<br />
the shuffle of thinking about getting the SP&M program up and rolling—are<br />
these: ‘‘What role(s) should individuals play in developing themselves for the<br />
future?’’ and ‘‘How do we discover what career goals people have set for themselves<br />
for the future?’’ It should not be assumed, of course, that everyone<br />
wants to be promoted. Some people look at what their bosses go through and<br />
say ‘‘No, thanks.’’ Decision-makers must learn sensitivity to the desire for<br />
work-life balance, a topic of growing interest. Career planning programs can,<br />
of course, be most helpfully integrated with SP&M programs in this respect.<br />
The Roles of Other Stakeholders<br />
The board of directors may want to play a role in the organization’s succession<br />
effort. If so, board members must be asked what role they want to play. Perhaps<br />
even a board committee will be established to oversee succession. That<br />
is a recommended approach because it focuses the attention of the CEO and<br />
other senior leaders on the issue, ensuring accountability. And it also helps to<br />
protect shareholder interests, at least in companies where stocks are traded,<br />
against the devastating impact on the company that can result from the sudden<br />
loss of key people such as the CEO or other senior leaders. 4<br />
Setting Program Priorities<br />
Much work needs to be done to establish a systematic SP&M program. But<br />
rarely, if ever, can it be accomplished all at once. Someone has to set program<br />
priorities, both short term and long term. That may be done by top-level deci-
144 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
sion-makers, a full-time or part-time SP&M coordinator, or a committee representing<br />
different groups or functions within the organization.<br />
Initial priorities should be set to address the organization’s most pressing<br />
problems—and to rectify the most serious weaknesses in bench strength. Subsequent<br />
priorities should be set to reflect a long-term plan for systematic<br />
SP&M in the organization.<br />
In addition to the activities already described in this chapter—such as<br />
clarifying roles, formulating a mission statement, writing a program policy,<br />
clarifying program procedures, and identifying the program’s targeted<br />
groups—other actions will have to be undertaken. Priorities should be established<br />
on what actions to take—and when—depending on the organization’s<br />
needs. These activities include:<br />
▲ Preparing an action plan to guide program start-up<br />
▲ Communicating the action plan<br />
▲ Training managers and employees for their roles in the systematic<br />
SP&M program<br />
▲ Organizing kickoff meetings and periodic briefing meetings to discuss<br />
the program<br />
▲ Counseling managers on handling unique succession planning problems,<br />
such as dealing with poor performers, managing high performers,<br />
grooming and coaching high-potentials, addressing the special problems<br />
of plateaued workers, and managing workplace diversity<br />
▲ Defining present and future work requirements, processes, activities,<br />
responsibilities, success factors, and competence<br />
▲ Appraising present individual performance<br />
▲ Assessing future individual potential<br />
▲ Providing individuals with the means by which to carry out career planning<br />
within the organization<br />
▲ Tracking performance and potential<br />
▲ Preparing and following through on individual development plans<br />
(IDPs) to help close gaps between what people know or do and what<br />
they must know or do in the future to qualify for advancement and<br />
ensure leadership continuity<br />
▲ Tracking innovative efforts to meet replacement needs<br />
▲ Establishing effective approaches to evaluating the benefits of systematic<br />
SP&M<br />
▲ Designing and implementing programs geared to special groups (such<br />
as high-potentials, plateaued workers, high performers, or low performers)<br />
or to meet special needs (such as reducing voluntary turnover of<br />
key employees after downsizing, handling cultural diversity, using suc-
Starting a Systematic Program<br />
145<br />
cession planning in autonomous work teams, and integrating SP&M<br />
with such other organizational initiatives as quality or customer service)<br />
Depending on an organization’s unique needs, however, some issues may demand<br />
immediate attention—and action.<br />
Take this opportunity to consider program priorities in the organization.<br />
Use the activity that appears in Exhibit 6-7 to establish initial program priorities<br />
in the organization. (If you are the coordinator of the SP&M program, you may<br />
choose to circulate the activity to key decision-makers for their reactions, feed<br />
back the results to them, and use their reactions as a starting point for setting<br />
program priorities. Alternatively, share the activity with a standing committee<br />
on SP&M established in the organization, if one exists. Ask committee members<br />
to complete the activity and then use the results as a basis for setting<br />
initial program priorities.) Revisit the priorities at least annually. Gear action<br />
plans according to the program priorities that are established.<br />
Addressing the Legal Framework<br />
Legal issues should not be forgotten in SP&M. That is especially true because<br />
employee complaints filed with the Equal Employment Opportunity Commission<br />
have been on the increase in recent years. Those responsible for formulating<br />
and implementing an SP&M program should familiarize themselves with<br />
government laws, rules, regulations, and other provisions—both in the United<br />
States and, if they do business internationally, in other nations as appropriate.<br />
Competent legal advice should be sought when the organization’s decisionmakers<br />
have reached agreement on the goals and objectives of the SP&M program.<br />
Additionally, employers should take special care to avoid real or perceived<br />
employment discrimination of all kinds. Private-sector employers<br />
should also take care to ensure that SP&M programs are consistent with company<br />
human resource policies and procedures as described in company documents<br />
(such as employee handbooks or policy and procedure manuals).<br />
Public-sector employers falling under state or federal civil service rules should<br />
double-check their program descriptions to ensure that SP&M programs are<br />
consistent with policies and procedures governing hiring, promotion, training,<br />
and other policies.<br />
A complex web of employment law exists at the federal government level<br />
in the United States. Key national employment laws are summarized in Exhibit<br />
6-8. Under the supremacy clause of the U.S. Constitution, federal laws take<br />
precedence over local laws unless no federal law exists or federal law specifically<br />
stipulates that local laws may be substituted for federal law. In addition<br />
to national labor laws, each state, county, and municipality may enact and<br />
enforce special laws, rules, regulations, or ordinances affecting employment<br />
in a local jurisdiction. The latter may influence succession planning and management<br />
practices.
146 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 6-7. An Activity for Establishing Program Priorities in Succession<br />
Planning and Management<br />
Directions: Use this activity to help establish priorities for the succession planning<br />
program in an organization. For each activity listed in the left column below, set a<br />
priority by circling a number for it in the right column. Use the following scale:<br />
1 A top priority that should be acted on now<br />
2 A secondary priority that is important but that can wait awhile for action<br />
3 A tertiary priority that should only be acted on after items prioritized as 1<br />
or 2 have received attention<br />
Circulate this activity among decision-makers as appropriate. If you do so, compile<br />
their responses and then feed them back as a catalyst for subsequent decision making.<br />
Add paper as necessary. (You may also wish to add other activities of interest.)<br />
Priority<br />
Top Secondary Tertiary<br />
Activity 1 2 3<br />
1. Preparing an Action Plan to Guide Program<br />
Start-Up 1 2 3<br />
2. Communicating the Action Plan 1 2 3<br />
3. Training Managers and Employees for<br />
Their Roles in the Systematic Succession<br />
Planning Program 1 2 3<br />
4. Organizing Kickoff Meetings and Periodic<br />
Briefing Meetings to Discuss the Program 1 2 3<br />
5. Counseling Managers on Handling Unique<br />
Succession Planning Problems 1 2 3<br />
6. Defining Present and Future Work Requirements,<br />
Processes, Activities, Responsibilities,<br />
Success Factors, and Competencies 1 2 3<br />
7. Appraising Present Individual Performance 1 2 3<br />
8. Assessing Future Individual Potential 1 2 3<br />
9. Providing Individuals with the Means by<br />
Which to Carry Out Career Planning<br />
Within the Organization 1 2 3
Starting a Systematic Program<br />
147<br />
10. Tracking Performance and Potential 1 2 3<br />
11. Preparing, and Following Through on, Individual<br />
Development Plans (IDPs) 1 2 3<br />
12. Using, and Tracking, Innovative Efforts to<br />
meet Replacement Needs 1 2 3<br />
13. Establishing Effective Approaches to Evaluating<br />
the Benefits of Systematic Succession<br />
Planning 1 2 3<br />
14. Designing and Implementing Programs<br />
Geared to Meeting Special Needs 1 2 3<br />
15. Other (specify) 1 2 3<br />
Of special importance to SP&M programs is the Uniform Guidelines on<br />
Employee Selection Procedures. Private-sector employers must ensure that all<br />
employment decisions are in compliance with these procedures. If they do not<br />
do so, they may risk a grievance under the Equal Employment Opportunity<br />
Commission or a ‘‘right to sue’’ letter when mediation efforts with the EEOC<br />
fail. Public-sector employers may find themselves falling under different standards<br />
established by the applicable branch of government.<br />
Establishing Strategies for Rolling Out the Program<br />
As an increasing number of employers begin to implement SP&M programs,<br />
they face dilemmas in how to roll them out. That is a frequent issue for consultants<br />
specializing in this area. I advise my clients to start at the top, with the<br />
CEO. The CEO is the real ‘‘customer’’ who must be satisfied, and it is wise to<br />
‘‘follow the generations’’ in a roll-out strategy. That means it is best to begin<br />
with the CEO and select his or her immediate successors first—a simple replacement<br />
strategy. The CEO and his immediate reports—that is, the senior<br />
executive team—should be next. That, too, is a simple replacement plan. However,<br />
as internal consultants from human resources or external consultants<br />
work with the senior executive team, they begin to understand what issues are<br />
important in such a program and experience it firsthand. Their involvement<br />
and participation ensures their ownership and understanding. Next, middle<br />
managers are included. That is a third-generation plan. As middle managers<br />
are included, the program formulated by the senior executives is fire-tested<br />
with middle managers. That sets the stage for the talent pools and skill inventories<br />
that characterize generation-four and generation-five plans.<br />
Of particular importance is the communication strategy. That is often an<br />
issue that should be addressed separately from the action plan. The CEO and<br />
senior executives should pay careful attention to how the SP&M programs are<br />
(text continues on page 154
148 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 6-8. U.S. Labor Laws<br />
Name of Law<br />
and Date of<br />
Enactment Legal Citation Brief Description of Key Provisions<br />
Davis-Bacon 40 U.S.C. and The Davis-Bacon Act applies to federal con-<br />
Act (1931) sect; 276 et struction and repair contracts over $2,000.<br />
seq.<br />
The Act requires contractors to pay their employees<br />
a specified minimum wage determined<br />
by the Secretary of Labor to be<br />
prevailing for similar work in that geographic<br />
area. Over 60 other federal laws make compliance<br />
with Davis-Bacon provisions a precondition<br />
for state and local contracts when a<br />
portion of the funding for those contracts<br />
comes from the federal government. The Act is<br />
enforced by the Wage and Hour division of the<br />
Department of Labor.<br />
The National 29 U.S.C. and The National Labor Relations Act protects the<br />
Labor Relations sect; 151 right of employees to choose whether to be<br />
Act (Wagner<br />
represented by a union. The Act protects<br />
Act and Taft-<br />
against coercion by employers or unions in<br />
Hartley Act)<br />
making this choice and establishes the ground<br />
(1947) rules for union representation elections. The<br />
Act establishes collective bargaining between<br />
employers and unions. The Act is enforced by<br />
the National Labor Relations Board.<br />
Fair Labor Stan- 29 U.S.C. and The Fair Labor Standards Act provides minidards<br />
Act sect; 201 et seq mum wage and overtime requirements. Under<br />
(1938) the FLSA all nonexempt employees are entitled<br />
to cash overtime for all hours worked over 40<br />
in a workweek. The Act is enforced by the<br />
Wage and Hour Division of the Department of<br />
Labor and private lawsuits.<br />
Labor- 29 U.S.C. and The Labor-Management Reporting and Dis-<br />
Management sect; 401 et seq closure Act, or the Landrum-Griffin Act, estab-<br />
Reporting and<br />
lishes a set of rights for employees who are<br />
Disclosure Act<br />
members of unions. They include the right to<br />
(Landrum-<br />
vote, attend meetings, meet and assemble with<br />
Griffin Act)<br />
other members, and freely express views and<br />
(1959) opinions. The Act also requires all labor<br />
unions to adopt a constitution and bylaws, and
Starting a Systematic Program<br />
149<br />
contains certain reporting requirements for<br />
labor organizations, their officers, and employees.<br />
This Act is enforced by the Office of<br />
Labor Management Standards of the Department<br />
of Labor.<br />
Contract Work 40 U.S.C. and This Act sets a standard 40-hour workweek for<br />
Hours Safety sect; 327 et seq employees of federal contractors and regu-<br />
Standards Act<br />
lates work in excess of the standard week in-<br />
(1962) cluding the requirement to pay overtime. The<br />
Act is enforced by the Wage and Hour Division<br />
of the Department of Labor.<br />
Equal Pay Act 29 U.S.C. and The Equal Pay Act prohibits discrimination in<br />
(1963) sect; 201 et seq pay and benefits on the basis of sex for jobs in<br />
the same establishment that require equal skill,<br />
effort, and responsibility and which are performed<br />
under similar working conditions. The<br />
Act is enforced by the Equal Employment Opportunity<br />
Commission.<br />
Title VII of the 42 U.S.C. and Title VII makes it unlawful for an employer with<br />
Civil Rights Act sect; 2000 et 15 or more employees to discriminate against<br />
(1964) seq. individuals with respect to hiring, compensation,<br />
terms, conditions, and privileges of employment<br />
on the basis of race, color, religion,<br />
national origin, or sex. Title VII is enforced by<br />
the Equal Employment Opportunity Commission.<br />
Executive 42 U.S.C.A. Executive Order 11246 prohibits job discrimi-<br />
Order 11246 and sect; nation by employers holding Federal contracts<br />
(1965) 2000e or subcontracts on the basis of race, color, sex,<br />
national origin, or religion and requires affirmative<br />
action to ensure equality of opportunity<br />
in all aspects of employment. The Order is<br />
enforced by the Office of Federal Compliance<br />
Contract Programs of the Department of<br />
Labor.<br />
Service Con- 41 U.S.C. and This Act is analogous to the Davis-Bacon Act<br />
tract Act (1965) sect; 351 et in the area of service contracts performed by<br />
seq.<br />
private companies doing work for the federal<br />
government. The Act requires contractors that<br />
provide services to the federal government to<br />
provide their employees a specified minimum<br />
(continues)
150 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 6-8. (continued)<br />
Name of Law<br />
and Date of<br />
Enactment Legal Citation Brief Description of Key Provisions<br />
wage and fringe benefits plan determined by<br />
the Secretary of Labor to be prevailing in the<br />
locality. The Act is enforced by the Wage and<br />
Hour Division of the Department of Labor.<br />
Age Discrimi- 29 U.S.C. and The Age Discrimination in Employment Act, or<br />
nation in Em- sect; 621 et ADEA, makes it unlawful for an employer with<br />
ployment Act seq. 20 or more employees to discriminate against<br />
(1967) individuals that are 40 years or older, with respect<br />
to hiring, compensation, terms, conditions,<br />
and privileges of employment on the<br />
basis of age. The Act is enforced by the Equal<br />
Employment Opportunity Commission.<br />
Federal Coal 30 U.S.C. and This Act empowers the Secretaries of Labor<br />
Mine Health sect; 801 et and Health and Human Services to promuland<br />
Safety Act seq. gate health and safety standards for the mining<br />
(1969) industry. The Act is enforced by the Mine Safety<br />
and Health Administration of the Department<br />
of Labor.<br />
Occupational 29 U.S.C. and The Occupational Safety and Health Act, or<br />
Safety and sect; 553, 651 OSHA, requires all employers to provide a<br />
Health Act et seq. workplace that is free from recognized hazards<br />
(1970) that cause, or are likely to cause, death or serious<br />
physical harm to employees. The Act also<br />
establishes the Occupational Safety and<br />
Health Administration, which is responsible for<br />
promulgating workplace safety standards and<br />
regulations for various industries. The Act is<br />
enforced by the Occupational Safety and<br />
Health Administration.<br />
Rehabilitation 29 U.S.C. and The Rehabilitation Act prohibits employers that<br />
Act (1973) sect; 701 et receive federal grants, loans, or contracts from<br />
seq.<br />
discriminating in their employment practices<br />
against individuals with disabilities. The Act is<br />
enforced by the Department of Labor.
Starting a Systematic Program<br />
151<br />
Employee 29 U.S.C. and The Employment Retirement Income Security<br />
Retirement In- sect; 301, Act, or ERISA, governs the operation of pencome<br />
Security 1001 et seq. sions and retirement benefits provided by pri-<br />
Act (1974)<br />
vate-sector employers to their employees. The<br />
Act does not require that employers provide<br />
such benefits, but regulates the conduct of employers<br />
that do provide such plans. The Act is<br />
enforced by the Pension and Welfare Benefits<br />
Administration of the Department of Labor.<br />
Vietnam Era 38 U.S.C. and VEVRAA makes it unlawful for employers to<br />
Veterans’ sect; 4301 discriminate against veterans of the Armed<br />
Readjustment<br />
Forces in their employment practices. It also<br />
Assistance Act<br />
provides veterans with certain reemployment,<br />
(1974) seniority, health benefits, and pension rights<br />
with respect to prior employment. The Act is<br />
enforced by the Office of Veterans Employment<br />
and Training of the Department of Labor.<br />
Black Lung 30 U.S.C. and This Act provides benefits to coal miners who<br />
Benefits Reform sect; 901 et are totally disabled due to pneumoconiosis<br />
Act (1977) seq. and to the surviving dependents of miners<br />
whose death was a result of this disease. The<br />
Act is enforced by the Office of Workers’ Compensation<br />
Programs of the Department of<br />
Labor.<br />
Labor- 29 U.S.C.A. The Labor-Management Cooperation Act en-<br />
Management and sect; 141 courages the establishment and operation of<br />
Cooperation note, 173, joint labor-management activities designed to<br />
Act (1978) 175a. improve labor relations, job security, and organizational<br />
effectiveness. The Act authorizes<br />
the Federal Mediation and Conciliation Service<br />
to provide assistance, contracts, and<br />
grants to joint labor-management committees<br />
that promote these purposes.<br />
Pregnancy Dis- 42 U.S.C. and The PDA, a 1978 amendment to Title VII of the<br />
crimination Act sect; 2000 et 1964 Civil Rights Act, makes it unlawful for an<br />
(1978) seq. employer to discriminate on the basis of pregnancy<br />
or childbirth. The Act is enforced by the<br />
Equal Employment Opportunity Commission.<br />
(continues)
152 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 6-8. (continued)<br />
Name of Law<br />
and Date of<br />
Enactment Legal Citation Brief Description of Key Provisions<br />
Multi-Employer 29 U.S.C. and This Act regulates the operation of multi-<br />
Pension Plan sect; 1001a et employer pension plans and provides protec-<br />
Amendments seq. tion and guarantees for the participants and<br />
Act (1980)<br />
beneficiaries of distressed plans. The Act is enforced<br />
by the Pension and Welfare Benefits Administration<br />
of the Department of Labor.<br />
Job Training 29 U.S.C. and This Act creates Private Industry Councils com-<br />
Partnership Act sect; 1501 et posed of business owners and executives as<br />
(1982) seq. well as representatives of organized labor to<br />
assist state and local governments in the development<br />
and oversight of job training programs.<br />
The Act is enforced by the Employment<br />
and Training Administration of the Department<br />
of Labor.<br />
Migrant and 29 U.S.C. and This Act governs the terms and conditions of<br />
Seasonal sect; 1801 et employment for migrant and seasonal agricul-<br />
Agricultural seq. tural workers and regulates the employment<br />
Protection Act<br />
practices of agricultural employers, agricul-<br />
(1983) tural associations, and farm labor contractors.<br />
The Act is enforced by the Wage and Hour Division<br />
of the Department of Labor and by private<br />
lawsuits.<br />
Immigration 29 U.S.C. and The Immigration Reform and Control Act, or<br />
Reform and sect; 1802 et IRCA, requires employers to verify that appli-<br />
Control Act seq. cants for employment are authorized to work<br />
(1986) in the United States. The Act provides civil and<br />
criminal penalties for knowingly employing unauthorized<br />
aliens and also prohibits discrimination<br />
based on national origin or citizenship<br />
if the alien is authorized to work. The Act is<br />
enforced by the Department of Justice and the<br />
Immigration and Naturalization Service.
Starting a Systematic Program<br />
153<br />
Economic Dis- 29 U.S.C. and This Act provides federal funds to the states for<br />
location and sect; 1651–53 basic readjustment and retraining of workers<br />
Worker Adjust-<br />
who have been terminated because of layoffs<br />
ment Assistance<br />
or plant closures and who are unlikely to return<br />
Act (1988)<br />
to their previous occupations. The Act is managed<br />
by the Employment Standards Administration<br />
of the Department of Labor.<br />
Employee Poly- 29 U.S.C. and This Act makes it unlawful for an employer to<br />
graph Protec- sect; 2001 et require, request, suggest, or cause an emtion<br />
Act (1988) seq. ployee or applicant to submit to a lie detector<br />
test. In addition, it prohibits the employer from<br />
threatening or taking any adverse employment<br />
action against an employee or applicant who<br />
refuses to take a lie detector test. The Act is<br />
enforced by a private right of action in the federal<br />
district courts.<br />
Worker Adjust- 29 U.S.C. and The Worker Adjustment and Retraining Notifiment<br />
and sect; 2101et cation Act, or WARN, requires employers with<br />
Retraining No- seq. 100 or more employees to give 60 days adtification<br />
Act<br />
vance notice to employees of impending plant<br />
(1988) closings or layoffs involving 50 or more employees.<br />
The Act is enforced by private lawsuits.<br />
Whistleblower 10 U.S.C. and The Whistleblower Protection statutes protect<br />
Protection sect; 2409; 12 employees of financial institutions and govern-<br />
Statutes (1989) U.S.C.; 1831j; ment contractors from discriminatory and re-<br />
31 U.S.C. and taliatory employment actions as a result of<br />
5328; 41 reporting violations of the law to federal au-<br />
U.S.C. 265. thorities. The Act is enforced by the Wage and<br />
Hour Division of the Department of Labor.<br />
Americans with 42 U.S.C. and The Americans with Disabilities Act, or ADA,<br />
Disabilities Act sect; 12101 et makes it unlawful for an employer with 15 or<br />
(1990) seq. more employees to discriminate against qualified<br />
individuals with disabilities with respect to<br />
hiring, compensation, terms, conditions, and<br />
privileges of employment. The Act is enforced<br />
by the Equal Employment Opportunity Commission.<br />
(continues)
154 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 6-8. (continued)<br />
Name of Law<br />
and Date of<br />
Enactment Legal Citation Brief Description of Key Provisions<br />
Older Workers 29 U.S.C. and This amendment to the Age Discrimination in<br />
Benefit Protec- sect; 623 et Employment Act makes it unlawful for an emtion<br />
Act (1990) seq. ployer to discriminate with respect to employee<br />
benefits on the basis of age. It also regulates<br />
early retirement incentive programs. The Act is<br />
enforced by the Equal Employment Opportunity<br />
Commission.<br />
Civil Rights Act 42 U.S.C. and The Civil Rights Act of 1991 amended the<br />
(1991) sect; 1981 et 1964 act, and the Americans with Disabilities<br />
seq.<br />
Act (ADA), to allow compensatory and punitive<br />
damages, but places caps on the amounts that<br />
can be awarded. The Act also provides for jury<br />
trials in suits brought under these laws.<br />
Family and 29 U.S.C. and The Family and Medical Leave Act, or FMLA,<br />
Medical Leave sect; 2601 et requires that employers with 50 or more em-<br />
Act (1991) seq. ployees provide up to 12 weeks of unpaid<br />
leave, within any 12-month period, to employees<br />
for the care of a newborn or adopted<br />
child, for the care of a seriously ill family member,<br />
or for treatment and care of the employee’s<br />
own serious medical condition. The Act is<br />
enforced by the Wage and Hour Division of<br />
the Department of Labor.<br />
Congressional 2 U.S.C. and When many of the above laws were enacted,<br />
Accountability sect; 1301 et Congress was expressly exempted from com-<br />
Act (1995) seq. pliance. The Congressional Accountability Act<br />
extends coverage of eleven laws to Congress<br />
in its capacity as an employer.<br />
Source: Originally downloaded from Labor Policy Association. (1997). U.S. Employment Laws. Website: http/www.lpa.org/lpa/<br />
laws.html. Washington, D.C.: Labor Policy Association. See also http://www.dol.gov/asp/programs/guide.htm.<br />
described to middle managers and other stakeholders. If they do not give special<br />
attention to the communication strategy, so as to make the business goals<br />
and the policies and procedures clear, they risk broad-scale failure of the plan.<br />
Human resource practitioners cannot do it all. They need to work with the<br />
CEO and senior executive team—and sometimes with external consultants as<br />
well—to craft a communication strategy that explains how the SP&M program<br />
works and why it exists.
Starting a Systematic Program<br />
155<br />
Summary<br />
Starting up a systematic SP&M program usually requires an organization’s decision-makers<br />
to:<br />
▲ Conduct a risk analysis and build a commitment to change.<br />
▲ Clarify the desired program roles of management, employees, facilitators,<br />
and participants.<br />
▲ Prepare a program mission statement.<br />
▲ Write a program policy and procedures.<br />
▲ Identify groups targeted for program action, both initially and subsequently.<br />
▲ Clarify the roles of the CEO, senior managers, and others.<br />
▲ Establish program priorities.<br />
▲ Address the legal framework in succession planning and management.<br />
▲ Plan strategies for rolling out a succession planning and management<br />
program.<br />
The next steps in starting the program are covered in the following chapter.<br />
They include preparing a program action plan, communicating it, training<br />
management and employees for enacting their roles in the program, and conducting<br />
program kickoff meetings, program briefing sessions, and counseling<br />
periods.
C H A P T E R 7<br />
REFINING THE PROGRAM<br />
Beyond startup, some additional steps will usually need to be taken before a<br />
systematic succession planning and management (SP&M) program becomes<br />
operational. These steps include:<br />
▲ Preparing a program action plan<br />
▲ Communicating the action plan<br />
▲ Conducting SP&M meetings<br />
▲ Training on SP&M<br />
▲ Counseling managers to deal with SP&M issues uniquely affecting them<br />
and their work areas<br />
This chapter briefly reviews each topic listed above, providing tips for effectively<br />
refining an SP&M program in its early stages.<br />
Preparing a Program Action Plan<br />
Setting initial program priorities is only a beginning. Turning priorities into<br />
realities requires dedication, hard work, and effective strategy. Preparing a<br />
program action plan helps conceptualize the strategy for implementing systematic<br />
SP&M in the organization.<br />
An action plan activates and energizes an SP&M program. It is a natural<br />
next step after setting program priorities because it indicates how they will be<br />
met.<br />
Components of an Effective Action Plan<br />
An action plan is akin to a project plan. It answers all the journalistic questions:<br />
▲ Who should take action?<br />
▲ What action should they take?<br />
▲ When should the action be taken?<br />
156
Refining the Program<br />
157<br />
▲ Where should the action be taken?<br />
▲ Why should the action be taken?<br />
▲ How should action be taken?<br />
In this way, an action plan provides a basis for program accountability.<br />
HowtoEstablishtheActionPlan<br />
Take several steps when establishing an action plan. First, list priorities. Second,<br />
indicate what actions must be taken to achieve each priority. Third, assign<br />
responsibility for each action. Fourth, indicate where the actions must be performed.<br />
Fifth and finally, assign deadlines or time indicators to indicate when<br />
the actions should be completed—or when each stage of completion should<br />
be reached. The result of these steps should be a concrete action plan to guide<br />
the SP&M program. (Fill in the worksheet appearing in Exhibit 7-1 to clarify<br />
the program action plan.)<br />
Communicating the Action Plan<br />
Few results will be achieved if an action plan is established and then kept<br />
secret. Some effort must be made to communicate the action plan to those<br />
affected by it and to those expected to take responsibility for participating in<br />
its implementation.<br />
Problems in Communicating<br />
Communicating about an SP&M program presents unique problems that are<br />
rarely encountered in other areas of organizational operations. The reason:<br />
many top managers are hesitant to share information about their programs<br />
widely inside or outside their organizations. They are reluctant to share information<br />
outside the organization for fear that succession plans will reveal too<br />
much about the organization’s strategy. If an SP&M program is closely linked<br />
to, and supportive of, strategic plans—and that is desirable—then revealing<br />
information about it may tip off canny competitors to what the organization<br />
intends to do.<br />
They are reluctant to share information inside the organization for fear<br />
that it will lead to negative consequences. High-performing or high-potential<br />
employees who are aware that they are designated successors for key positions<br />
may:<br />
▲ Become complacent because they think advancement is guaranteed.<br />
This is called the crown prince phenomenon.
158 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 7-1. A Worksheet for Preparing an Action Plan to Establish the<br />
Succession Planning and Management Program<br />
Directions: Use this worksheet to help you formulate an action plan to guide the<br />
start-up of an SP&M program in your organization. In column 1, list program priorities<br />
(what must be done first, second, third, and so on?) and provide a rationale (why<br />
are these priorities?). In column 2, list what tasks must be carried out to transform<br />
priorities into realities (how will priorities be achieved?). In column 3, assign responsibility<br />
for each task. In column 4, indicate (if applicable) special locations (where<br />
must the tasks be accomplished or the priorities achieved?). In column 5, assign<br />
deadlines or time indicators.<br />
Circulate this worksheet among decision-makers—especially top-level managers<br />
who are participating on an SP&M committee. Ask each decision-maker to complete<br />
the worksheet individually. Then compile their responses, feed them back, and meet<br />
to achieve consensus on this detailed action plan. Add paper and/or priorities as<br />
necessary.<br />
Column 1 Column 2 Column 3 Column 4 Column 5<br />
Program<br />
Deadlines/<br />
Priorities<br />
Time<br />
and Rationale Tasks Responsibility Location(s) Indicators<br />
(By when (How will pri- (Who is re- (Where must (Assign deadshould<br />
each orities be sponsible for tasks be ac- lines or time<br />
task be com- achieved?) each task?) complished, indicators.)<br />
pleted? What<br />
if that is apmust<br />
be done<br />
plicable?)<br />
in order of<br />
importance,<br />
and why are<br />
these priorities?)<br />
▲ Grow disenchanted if organizational conditions change and their status<br />
as successors is no longer assured.<br />
▲ ‘‘Hold themselves for ransom’’ by threatening to leave unless they receive<br />
escalating raises or advancement opportunities.<br />
Of course, the opposite can also happen. If high potentials are kept unaware<br />
of their status, they may seek advancement opportunities elsewhere. Equally
Refining the Program<br />
159<br />
bad, good performers who are not presently identified as successors for key<br />
positions may grow disenchanted and demotivated, even though they may<br />
already be demonstrating that they have that potential. A poorly handled communication<br />
strategy can lead to increases in avoidable or critical turnover,<br />
thereby costing the organization precious talent and driving up training costs.<br />
Choosing Effective Approaches<br />
As part of the SP&M program, decision-makers should review how the organization<br />
has historically communicated about succession issues—and consider<br />
how it should communicate about them. Establishing a consistent communication<br />
strategy is vital.<br />
Valuable clues about the organization’s historical communication strategy<br />
may be found in how key job incumbents were treated previously and how<br />
wage and salary matters are handled. If key job incumbents did not know that<br />
they were designated successors before they were eligible for advancement or<br />
if the organization’s practice is not to publish salary schedules, then it is likely<br />
that a ‘‘closed’’ communication strategy is preferred. That means information<br />
is kept secret, and successors are not alerted to their status. On the other<br />
hand, if key job incumbents did know that they were designated successors<br />
before they were promoted or if salary schedules are published, then an<br />
‘‘open’’ communication strategy is preferred. That means people are treated<br />
with candor.<br />
Choose an approach to communication based on the preferences of decision-makers.<br />
If their preferences seem unclear, ask questions to discover what<br />
they are:<br />
▲ How, if at all, should employees be informed about the SP&M program?<br />
(For instance, should the mission statement and/or policy and procedures<br />
on SP&M be circulated?)<br />
▲ How should the organization characterize the roles of employee performance<br />
appraisal, individual potential assessment, and individual development<br />
planning in SP&M?<br />
▲ How should decisions about individual selection, promotion, demotion,<br />
transfer, or development in place be explained to those who ask?<br />
▲ What problems will result from informing individuals about their status<br />
in succession plans? From not informing them?<br />
▲ What problems will result from informing employees about the SP&M<br />
program? What problems will result from not informing them?<br />
Ultimately, the organization should choose a communication policy that is<br />
consistent with the answers to the questions above. Often the best approach<br />
is to communicate openly about the SP&M program in general, but conceal<br />
the basis for individual personnel actions in line with good business practice
160 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
and individual privacy laws. Individuals should be encouraged to develop<br />
themselves for the future, but should understand, at the same time, that nothing<br />
is being ‘‘promised’’; rather, qualifying is a first step but does not, in itself,<br />
guarantee advancement.<br />
Conducting Succession Planning and Management<br />
Meetings<br />
It is a rare organization that does not need at least one meeting to lay the<br />
foundation for a systematic SP&M program. Often, four meetings are necessary<br />
during startup: one of top decision-makers to verify the need for the program;<br />
a second, larger meeting to seek input from major stakeholders; a third,<br />
smaller committee meeting of change champions to hammer out a proposal<br />
to guide program startup; and a fourth meeting to introduce the program and<br />
reinforce its importance to management employees who will play critical roles<br />
in cultivating, nurturing, coaching, and preparing the leaders of the future at<br />
all levels. Later, periodic meetings are necessary to review program progress<br />
and ensure continuous improvement.<br />
Meeting 1: Verifying the Need<br />
In the first meeting, a handpicked group—usually limited to the ‘‘top of the<br />
house’’—meets to verify that a genuine need exists to make SP&M a more<br />
systematic process. In this meeting it is common to review current practices<br />
and problems that stem from an informal approach to SP&M. This meeting<br />
usually stems directly from a crisis or from the request of one who wants to<br />
introduce a new way to carry out SP&M.<br />
Meeting 2: Seeking Input<br />
In the second meeting, a larger group of key decision-makers is usually assembled<br />
to surface SP&M problems and to galvanize action. This meeting may take<br />
the form of an executive retreat. Executives should properly be involved in the<br />
program formulation process, since—regardless of the initial targeted group<br />
for the SP&M program and its initial priorities—such a program has important<br />
strategic implications for the organization. Despite recent moves to involve<br />
employees in organizational decision making, it has long been held that executives<br />
have the chief responsibility for organizational strategy formulation. That<br />
is borne out by numerous research studies of executive roles. 1 It is also consistent<br />
with the commonsense view that someone must assume leadership when<br />
beginning new initiatives. 2<br />
Planning an executive retreat focused on SP&M should usually be a joint<br />
undertaking of the CEO and a designated coordinator for the SP&M program.
Refining the Program<br />
161<br />
(The coordinator may be the vice president of personnel or human resources,<br />
a high-level staff generalist from the HR function, the training director, an OD<br />
director, or a management development director.) A designated coordinator<br />
is needed because busy CEOs, while they should maintain active personal<br />
involvement in the SP&M program if it is to work, will seldom have the necessary<br />
time to oversee daily program operations. That responsibility should be<br />
assigned to someone or it will be lost in the shuffle of daily work responsibilities.<br />
Hence, naming a program coordinator is usually an advisable choice.<br />
While a designated coordinator may be selected from a high level of the<br />
line (operating) management ranks—and that will be a necessity in small organizations<br />
not having an HR function—the individual chosen for this responsibility<br />
should have a strong commitment to SP&M, considerable knowledge<br />
about the organization’s HR policies and procedures as well as applicable HR<br />
laws, expertise in state-of-the-art management and leadership development<br />
and human resource development practices, in-depth knowledge about the<br />
organization’s culture, and credibility with all levels of the organization’s management.<br />
(It doesn’t hurt, either, if the individual chosen for this role is perceived<br />
to be a high-potential in his or her own right.)<br />
The CEO and the SP&M coordinator should meet to hammer out an action<br />
plan for the executive retreat focused on collecting input. The retreat should<br />
be held soon after the CEO announces the need for a systematic SP&M program<br />
and names a program coordinator. Invitations should be extended to the<br />
CEO’s immediate reports. The retreat should usually be held off-site, at a quiet<br />
and secluded location, to minimize interruptions. The focus of the retreat<br />
should usually be on:<br />
▲ Explaining the need for a more systematic approach to SP&M<br />
▲ Formulating a (draft) program mission statement<br />
▲ Identifying initial target groups to be served by the program<br />
▲ Setting initial program priorities<br />
An executive retreat is worthwhile because it engages the attention—and<br />
involvement—of key players in the organization’s strategic planning activities,<br />
thereby creating a natural bridge between SP&M and strategic planning. The<br />
retreat’s agenda should reflect the desired outcomes. Presentations may be<br />
made by the CEO, the SP&M coordinator, and the vice president of HR. Outsiders<br />
may be invited to share information about SP&M—including testimonials<br />
about succession programs in other organizations, war stories about the problems<br />
that can result when SP&M is ignored, and descriptions of state-of-the-art<br />
SP&M practices. An important component of any retreat should be small-group<br />
activities geared to surfacing problems and achieving consensus. (Many of the<br />
activities and worksheets provided in this book can be adapted for that purpose,<br />
and the CD-ROM accompanying this book contains a briefing on succes-
162 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
sion suitable for such a meeting.) In many cases, a retreat will end when the<br />
CEO appoints a standing committee to work with the succession planning<br />
coordinator to report back with a detailed program proposal.<br />
In some organizations, the CEO or the SP&M coordinator may prefer that<br />
the retreat be facilitated by third-party consultants. That is desirable if the consultants<br />
can be located and if they possess considerable expertise in SP&M<br />
and in group facilitation. It is also desirable if the CEO feels that third-party<br />
consultants will increase the credibility and emphasize the importance of the<br />
program.<br />
Meeting 3: Hammering Out a Proposal<br />
A standing SP&M committee should be established to continue the program<br />
formulation process begun in the executive retreat. A committee format is<br />
really the best approach to (1) maintain high-level commitment and support,<br />
(2) conserve the time required to review the fruits of the committee’s investigations,<br />
and (3) provide a means for senior-level involvement in SP&M. The<br />
SP&M coordinator should be automatically named a committee member,<br />
though not necessarily committee chair. If the CEO can be personally involved—and<br />
that is highly desirable—he or she should be the chair. Committee<br />
members should be chosen for their interest in SP&M, their track records<br />
of exemplary performance, their proven ability to develop people, and their<br />
keen insight into organizational culture.<br />
In most organizations, a committee of this kind should meet frequently<br />
and regularly during program startup. Initial meetings should focus on investigating<br />
organizational SP&M needs, benchmarking practices in other organizations,<br />
and drafting a detailed proposal to guide the SP&M program.<br />
Meeting 4: The Kickoff Meeting<br />
In the fourth meeting, the program is introduced to those previously involved<br />
in the second meeting and any others, as appropriate. This is typically called a<br />
kickoff meeting.<br />
In most cases, this meeting should focus on program details—and the part<br />
that the meeting participants should play to ensure program success. In short,<br />
a kickoff meeting should seek answers to two questions: (1) What is the<br />
SP&M program in the organization? and (2) What do the participants need to<br />
do to make the program successful?<br />
When organizing a kickoff meeting, pay attention to the following questions:<br />
1. Who will be invited?<br />
2. What exactly should participants know or be able to do upon leaving<br />
the meeting?
Refining the Program<br />
163<br />
3. When should the kickoff meeting be held? For instance, would timing<br />
it to follow a strategic planning retreat be desirable?<br />
4. Where should the kickoff meeting be held? If maximum secrecy is desired,<br />
an off-site location is wise.<br />
5. Why is the meeting being held? If the aim is to reinforce the importance<br />
of this new effort, then the CEO should usually be the keynote presenter.<br />
6. How will the meeting be conducted?<br />
Specific training on program details can then be offered later on establishing<br />
work requirements, appraising present individual performance, assessing future<br />
individual potential, establishing career goals, establishing individual development<br />
plans (IDPs), and using training, education, and development to<br />
help meet succession needs.<br />
Meeting 5: Periodic Review Meetings<br />
Conduct periodic review meetings after the succession planning program has<br />
been established. These meetings should focus on such issues as:<br />
▲ The linkage between SP&M and organizational strategic plans (that may<br />
be handled during strategic planning retreats)<br />
▲ The progress made in the SP&M program<br />
▲ Any need for revisions to the program’s mission statement, governing<br />
policy and procedures, target groups, priorities, action plans, communication<br />
strategies, and training relevant to the succession planning program<br />
▲ The status of succession issues in each organizational component, including<br />
periodic meetings between the CEO and senior executives<br />
The last of these should be familiar to executives in most major corporations.<br />
Once a quarter, senior executives from each part of the corporation<br />
meet with the CEO and a top-level committee to review the status of SP&M in<br />
that part of the corporation. Common topics in such meetings include: (1)<br />
reviewing employee performance; (2) identifying and discussing high potentials;<br />
(3) discussing progress made on individual development plans; and (4)<br />
addressing critical strengths and weaknesses having to do with individual development.<br />
Such meetings serve to keep the SP&M program on target and to<br />
emphasize its importance to senior executives, who should be held accountable<br />
for ‘‘people development’’ as much as for ‘‘market development’’ or ‘‘financial<br />
development.’’
164 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Training on Succession Planning and Management<br />
Implementing a systematic approach to SP&M requires new knowledge and<br />
skills from those expected to cultivate the organization’s internal talent. Some<br />
means must be found to train them so that they are the most efficient and<br />
effective in their new role.<br />
Matching Training to Program Planning<br />
Training to support SP&M should be designed to match program priorities.<br />
Indeed, to plan training on SP&M, examine program priorities first, and use<br />
them as clues for designing initial training efforts.<br />
In most cases, when organizations establish systematic SP&M, training<br />
should be undertaken to answer the following questions:<br />
▲ What is the organization’s SP&M program? What are its mission, policy,<br />
procedures, and activities?<br />
▲ What are the desirable roles of management employees, succession<br />
planning and management facilitators, and individual employees in the<br />
SP&M program?<br />
▲ What is the organization’s preferred approach to clarifying present and<br />
future work requirements? How should it relate to SP&M as a source of<br />
information about activities, duties, responsibilities, competencies, and<br />
success factors in key positions?<br />
▲ What is the organization’s performance appraisal system, and how<br />
should it relate to succession as a source of information about individual<br />
job performance?<br />
▲ What is the organization’s formally planned individual career planning<br />
program (if one exists), and how does it relate to succession as a source<br />
of information about individual career goals and aspirations?<br />
▲ What is the organization’s potential assessment program (if one exists,<br />
as it should), and how does it relate to succession as a source of information<br />
about individual potential for future advancement?<br />
▲ How do the organization’s training, education, and development programs<br />
relate to preparing individuals for succession and advancement?<br />
▲ What is an individual development plan? Why is planning for individual<br />
development important? How should programs for individual development<br />
be designed? Implemented? Tracked?<br />
▲ How does the organization keep track of its human talent?<br />
▲ How should the organization evaluate and continuously improve its<br />
SP&M program?
Refining the Program<br />
165<br />
▲ How should the organization handle special issues in SP&M—such as<br />
high performers, high potentials, and plateaued workers?<br />
▲ How should the SP&M program be linked to the organization’s strategy?<br />
To HR strategy? To other plans (as appropriate)?<br />
Refer to the draft training outlines appearing in Exhibit 7-2 and to the training<br />
material provided on the CD-ROM accompanying this book as starting points<br />
for developing in-house training sessions on SP&M. Note that such training<br />
should be tailor-made to meet organizational needs.<br />
As an alternative, decision-makers may prefer to contract with qualified<br />
external consultants to design and deliver training on SP&M for the organization.<br />
Such consultants may be located through word-of-mouth referrals from<br />
practitioners in other organizations, those who have written extensively on<br />
SP&M, or organizations listed on the Web. They are especially appropriate to<br />
use when in-house expertise is limited, external consultants will lend initial<br />
credibility to the program, the pressure is on to obtain quick results, or inhouse<br />
staff members are unavailable. If decision-makers decide to use external<br />
assistance, then the consultants should be invited in for a day or two to discuss<br />
what assistance they can provide. They should be asked for references from<br />
previous organizations with which they have worked. Before their arrival, they<br />
should also be given detailed background information about the organization<br />
and its existing SP&M programs and challenges.<br />
Many external consultants will begin by meeting individually with key decision-makers<br />
and will then provide a brief group presentation about SP&M<br />
issues. Both can serve a valuable purpose. Individual meetings will emphasize<br />
the importance of the issue. Group meetings will help to informally educate<br />
participants about state-of-the-art practices outside the organization, which<br />
can create an impetus for change.<br />
Ensuring Attendance at Training: A Key Issue<br />
Perhaps the single most challenging aspect of offering training on SP&M is<br />
securing the critical mass necessary to ensure consistent approaches throughout<br />
the organization. It is particularly difficult to ensure that key managers will<br />
attend group training—and they are precisely the most important to reach<br />
because they exert the greatest influence on SP&M issues. But no matter what<br />
is done, some key managers will claim that they have too much work to do<br />
and cannot spare valuable time away from work to attend. Others will not<br />
attend and will offer no explanation. But it may prove to be impossible to fit<br />
them into any group training schedule that is established. No magic elixir will<br />
solve these problems. It amounts to a matter of commitment. If members of<br />
the board of directors and the CEO are genuinely committed to ensuring effective<br />
succession planning, then they will become personally involved to ensure<br />
(text continues on page 170)
166 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 7-2. Sample Outlines for In-House Training on Succession Planning<br />
and Management<br />
Purpose<br />
To provide an opportunity for skill-building on employee performance appraisal,<br />
potential assessment, and individual development planning<br />
Targeted Participants<br />
Individuals, such as key position incumbents and immediate organizational superiors<br />
of high-potentials, who have important roles to play in implementing the action<br />
plan governing the succession planning program<br />
Objectives<br />
Upon completion of this training, participants should be able to:<br />
1. Explain the organization’s business reasons for establishing an<br />
SP&M program and the relationship between SP&M and strategic planning<br />
and human resources planning.<br />
2. Describe the mission, policy, procedures, and activities of the SP&M program.<br />
3. Review the roles and responsibilities of managers in preparing their employees<br />
to assume key positions in the organization.<br />
4. Explain how the organization clarifies work requirements and identifies key<br />
positions.<br />
5. Explain the role of employee performance appraisal in SP&M and describe<br />
the organization’s performance appraisal procedures.<br />
6. Conduct effective employee performance appraisal interviews.<br />
7. Explain the role of employee potential assessment in SP&M and describe<br />
the organization’s procedures for potential assessment.<br />
8. Conduct effective employee potential assessments.<br />
9. Explain the role of individual development planning in SP&M and describe<br />
the organization’s procedures for individual development planning.<br />
10. Select and oversee appropriate internal development approaches.<br />
11. Explain when promotion from within is—and is not—appropriate for filling<br />
key vacancies.<br />
12. Review the organization’s approach to inventorying human talent.
Refining the Program<br />
167<br />
Outline—Session 1<br />
‘‘Introducing Succession Planning and Management’’<br />
I. Introduction<br />
A. Purpose of the session<br />
B. Objectives of the session<br />
C. Organization (structure) of the session<br />
II. Defining Succession Planning and Management (SP&M)<br />
A. What is it?<br />
B. Why is it important generally?<br />
III. Relating SP&M to the Organization<br />
A. What are present organizational conditions?<br />
B. What are the organization’s strategic plans/goals?<br />
C. What are the organization’s human resources plans and goals?<br />
D. What is the need for SP&M, given organizational strategy and human<br />
resource plans?<br />
IV. The Purpose of the SP&M Program<br />
A. Mission<br />
B. Policy<br />
C. Procedures<br />
D. Activities<br />
V. Roles in SP&M<br />
A. What should be the role of the immediate organizational superior?<br />
B. What should be the individual’s role in SP&M?<br />
VI. Defining Work Requirements<br />
A. Job Analysis/Competency Models<br />
B. Job Descriptions and Specifications/Competency Models<br />
C. Other Approaches<br />
VII. Identifying Key Positions<br />
A. How are they defined?<br />
B. Where are they located?<br />
C. How will key positions change in the future—and why?<br />
VIII. Conclusion<br />
A. Summary<br />
B. Action planning for on-the-job action<br />
C. Session evaluations<br />
(continues)
168 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Exhibit 7-2. (continued)<br />
Outline—Session 2<br />
‘‘Conducting Effective Employee Performance Appraisals for<br />
Succession Planning and Management’’<br />
I. Introduction<br />
A. Purpose of the session<br />
B. Objectives of the session<br />
C. Organization (structure) of the session<br />
II. Defining Employee Performance Appraisal<br />
A. What is it?<br />
B. Why is it important generally?<br />
III. Relating Employee Performance Appraisal to SP&M<br />
A. Approaches<br />
B. Current method<br />
C. Relationship between appraisal and SP&M<br />
IV. Reviewing the Organization’s Performance Appraisal Procedures<br />
A. Overview<br />
B. Step-by-step description of procedures<br />
V. Conducting Effective Performance Appraisal Interviews<br />
A. Overview<br />
B. Using the form to structure the interview<br />
VI. Role Plays (practice appraisal interviews)<br />
VII. Conclusion<br />
A. Summary<br />
B. Action planning for on-the-job action<br />
C. Session evaluations<br />
Outline—Session 3<br />
‘‘Conducting Effective Employee Potential Assessment for<br />
Succession Planning and Management’’<br />
I. Introduction<br />
A. Purpose of the session<br />
B. Objectives of the session<br />
C. Organization (structure) of the session<br />
II. Defining Employee Potential Assessment<br />
A. What is it?<br />
B. Why is it important generally?<br />
III. Relating Employee Potential Assessment to SP&M<br />
A. Approaches<br />
B. Current method<br />
C. Relationship between potential assessment and SP&M
Refining the Program<br />
169<br />
IV. Reviewing the Organization’s Potential Assessment Procedures<br />
A. Overview<br />
B. Step-by-step description of procedures<br />
V. Conducting Effective Potential Assessment<br />
A. Overview<br />
B. Using existing forms and procedures<br />
C. Gathering individual career planning information for use with potential<br />
assessment<br />
VI. (Optional) Role Plays (practice potential assessment interviews)<br />
VII. Conclusion<br />
A. Summary<br />
B. Action planning for on-the-job action<br />
C. Session evaluations<br />
Outline—Session 4<br />
‘‘Conducting Effective Individual Development Planning’’<br />
I. Introduction<br />
A. Purpose of the session<br />
B. Objectives of the session<br />
C. Organization (structure) of the session<br />
II. Defining Individual Development Planning<br />
A. What is it?<br />
B. Why is it important generally?<br />
III. Relating Individual Development Planning to SP&M<br />
A. Approaches<br />
B. Current method<br />
C. Relationship between individual development planning and SP&M<br />
IV. Reviewing Approaches to Individual Development Planning<br />
A. Overview<br />
B. Step-by-step description of approach<br />
V. Facilitating Effective Individual Development Planning<br />
A. Overview<br />
B. Approaches to individual development planning<br />
C. Relating individual career planning to individual development planning<br />
VI. Conclusion<br />
A. Summary<br />
B. Action planning for on-the-job action<br />
C. Session evaluations
170 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
the attendance of the targeted training participants. They will also attend<br />
themselves—and perhaps help deliver the training—and thereby demonstrate<br />
hands-on interest and support. Their participation and involvement will exert<br />
a powerful, but subtle, inducement for others to attend. But if they are unwilling<br />
to be involved, no amount of cajoling or threatening is an effective substitute.<br />
Moreover, they must set the example and follow the policies established<br />
for the organization.<br />
Here are a few tips for securing attendance at group training on SP&M,<br />
assuming that adequate top management commitment exists:<br />
▲ Draft a memo for the chairman or CEO to initial to go out with training<br />
invitations. Stress who will be in attendance, what issues will be discussed,<br />
and why the training is important.<br />
▲ Pick an opportune time. Check dates to make sure that the dates chosen<br />
for training do not conflict with other, predictable dates.<br />
▲ If possible, tie the training on succession planning to other events—<br />
such as strategic planning retreats—in which the targeted participants<br />
are already scheduled to attend.<br />
▲ Field-test the training materials on a small, handpicked group of supportive<br />
managers. Be sure that all time is effectively used and that every<br />
training activity relates directly to SP&M practices in the organization.<br />
▲ If possible, videotape a well-rehearsed practice session and share it before<br />
the session with the chairman, CEO, or other key management personnel.<br />
Ask for their suggestions about revision before the session.<br />
Other Approaches to Training Management Employees<br />
There will always be some management employees who will be unable to attend<br />
group training on SP&M, even when vigorous steps are taken to ensure<br />
attendance. They will have legitimate reasons for not attending. But that will<br />
not alter the fact that they missed the training. They are the group most likely<br />
to operate in a way inconsistent with organizational policy because they<br />
missed the opportunity to learn about it firsthand.<br />
Deal with this audience through a form of ‘‘guerrilla warfare.’’ Make sure<br />
that it is clear who they are. Then use any of the following tactics to train them:<br />
▲ Meet with them individually, if their numbers are small enough to make<br />
that practical and if they are not so geographically dispersed that traveling<br />
to their locations is prohibitively expensive. Deliver training personally.<br />
▲ Videotape a practice session of the training and send it to those unable<br />
to attend. Then follow up with them later for their questions and reactions.
Refining the Program<br />
171<br />
▲ Ask another manager who did attend—such as the CEO—to describe to<br />
them the key lessons of the training in his or her own words. (That<br />
should reinforce the importance of the message.)<br />
Training Participants in Succession Planning and Management<br />
Training for participants in SP&M will be greatly affected by the organization’s<br />
communication strategy. If decision-makers do not wish to inform individuals<br />
of the organization’s SP&M practices, then no training will typically be given;<br />
on the other hand, if the organization adopts a policy of openness, then training<br />
on SP&M may be offered.<br />
There are three general ways of offering such training: (1) direct training;<br />
(2) training integrated with other issues; and (3) training tied to career planning.<br />
Direct Training<br />
In direct training, employees are informed of the organization’s SP&M policy<br />
and procedures. They are briefed in general terms, usually without specific<br />
descriptions of how the program is linked to existing organizational strategy.<br />
They learn how the SP&M program is linked to defining work requirements<br />
and job competencies, appraising present employee performance, assessing<br />
future individual potential, and establishing individual development plans.<br />
Training Integrated with Other Issues<br />
When training on SP&M is integrated with other issues, employees are told<br />
how their training, education, and development efforts factor into qualifying<br />
for advancement. No promises are made; rather, the value of planned learning<br />
activities is stressed as one means by which the individual can take proactive<br />
steps to qualify for leadership positions.<br />
Training Tied to Career Planning<br />
Organizational succession planning and individual career planning represent<br />
mirror images of the same issue. Succession planning and management helps<br />
the organization meet its HR needs to ensure that it is equipped with the talent<br />
needed to survive and succeed. On the other hand, individual career planning<br />
helps the individual establish career goals and prepare for meeting those<br />
goals—either inside or outside the organization.<br />
When training on SP&M is tied to training on career planning, individuals<br />
are furnished with information about work requirements at different levels<br />
and in different functions or locations. They also learn about performance<br />
requirements in different job categories and about future success factors. With<br />
this information, they can establish their own career goals and take active steps<br />
to prepare themselves for advancement by seeking appropriate training, education,<br />
and development experiences.
172 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
Counseling Managers About Succession Planning Problems<br />
in Their Areas<br />
Succession planning and management coordinators should make a point of<br />
meeting periodically with managers to discuss SP&M issues in their work areas<br />
and to offer individualized counseling about how to deal with those problems.<br />
If that counseling is requested, it indicates that executives have accepted<br />
SP&M, they value advice about people management issues, and they are making<br />
honest efforts to meet the SP&M needs of their organization.<br />
The Need for Individual Counseling Sessions<br />
Executives sometimes have need of third-party advice. In some cases they will<br />
be reluctant to share those problems with anyone—including the CEO—for<br />
fear that they will be perceived as unable to manage tough-to-handle management<br />
situations. Individual counseling with these executives by the SP&M coordinator<br />
can serve an invaluable purpose for improving SP&M practices. For<br />
this reason, the CEO and other decision-makers in the organization should<br />
actively encourage such sessions.<br />
Who Should Conduct the Sessions?<br />
The SP&M coordinator should arrange to meet with senior executives to conduct<br />
individual counseling sessions on a regular basis. However, the coordinator<br />
must first seize the initiative to arrange the meetings until the coordinator<br />
has gained sufficient credibility to be sought out for help by executives.<br />
The SP&M coordinator should call each senior executive periodically and<br />
ask when they can meet. Although these individual meetings can be timeconsuming,<br />
they are the best way to demonstrate commitment to the effort—<br />
and get real payoffs from it. Individual meetings are usually best timed sometime<br />
ahead of periodic SP&M meetings, such as those held quarterly in many<br />
corporations. By meeting ahead of time, the SP&M coordinator and the executive<br />
in charge of that work area can discuss sensitive personnel issues that<br />
executives may be reluctant to bring up in group meetings—or share over the<br />
phone or by mail.<br />
Essential Requirements for Effective Counseling Sessions<br />
To conduct effective counseling sessions, follow these general guidelines:<br />
1. Send questions in advance, making the purpose of the session clear.<br />
2. Tailor the questions to issues that will be treated in regularly scheduled<br />
group meetings with the CEO so that their relevance is immediately<br />
apparent.
Refining the Program<br />
173<br />
3. Keep the meeting short and on target unless asked to offer advice on<br />
specific issues.<br />
4. Always assume that everything is said in strictest confidence. (This point<br />
deserves strong emphasis.)<br />
5. Be alert to casual remarks or questions that may indicate problems,<br />
probing with additional questions to learn more as appropriate.<br />
Common Succession Planning and Management Problems—and<br />
Possible Solutions<br />
Succession planning and management coordinators who meet to counsel<br />
managers on ‘‘people problems’’ unique to their areas should be prepared to<br />
deal with complex problems. Many events may derail the progress of otherwise<br />
high-potential employees, and an SP&M coordinator should be prepared<br />
to offer advice on what to do about those problems. Reclaiming high-potential<br />
employees on the verge of derailing their careers is an important role, and one<br />
that is often informally loaded on the SP&M coordinator.<br />
Over the years I have been asked to offer executives advice on how to<br />
counsel high potentials experiencing the following problems that threatened<br />
to derail their futures:<br />
▲ An executive engaged in a high-profile extramarital affair with a subordinate<br />
▲ An executive accused of blatant sexual harassment—but where the accusation<br />
could not be substantiated<br />
▲ An executive, slated for the CEO spot, who was recognized as an alcoholic<br />
by everyone except himself<br />
▲ A male executive who was grossly insubordinate to his female superior<br />
▲ An executive renowned for her technical knowledge who was notorious<br />
for her inability to work harmoniously with her peers<br />
▲ An executive who experienced a major personality conflict with his immediate<br />
superior<br />
These are merely samples of the problems about which the SP&M coordinator<br />
may be asked to offer advice.<br />
Although few SP&M coordinators are trained psychologists or psychiatrists,<br />
they should be able to apply the following steps, which I have found helpful<br />
when advising executives about ‘‘people problems.’’<br />
Step 1: Ask for information about the present situation. What is happening<br />
now? Where is the executive obtaining information? When and how was<br />
this information revealed? Was the information obtained firsthand, or is the
174 L AYING THE FOUNDATION FOR A S UCCESSION P LANNING AND M ANAGEMENT P ROGRAM<br />
executive relying on intermediaries, rumors, or speculation? What steps have<br />
been taken to separate fact from fancy?<br />
Step 2: Ask for information about corrective actions already attempted.<br />
What efforts, if any, have already been made to correct the problem? What<br />
were the results of those actions? What efforts have been made to alert the<br />
affected individual to the problem or to clarify desired behavior or performance?<br />
Step 3: Determine the problem’s cause, if possible, and assess whether it<br />
can be solved. What does the executive believe is the cause of the problem?<br />
Does the person who is experiencing the problem know what to do? (If not, it<br />
may indicate a training need.) Is the person engaging in undesirable behavior<br />
deliberately and maliciously? (If so, it may indicate a disciplinary problem.)<br />
Has anyone asked the person experiencing the problem to identify its cause<br />
and possible solution(s)? Can the individual avoid derailing his or her career,<br />
or have matters already gone so far that others have lost all confidence for<br />
improvement?<br />
Step 4: Establish an action plan. Emphasize the importance of properly<br />
managing the organization’s human resources to the executive who is receiving<br />
the counseling. Express strong confidence in the executive’s ability to deal<br />
with the problem. Offer to help in any way possible. Suggest such steps as<br />
these: (1) Put the problem in writing and meet with the person having the<br />
problem so as to make it as clear as possible; (2) encourage the executive to<br />
clarify, in writing, what needs to be done, how it should be done, and what<br />
will happen if it is not done.<br />
Step 5: Follow up. After meeting with the executive who has had a problem,<br />
the SP&M coordinator should make a point of following up later to see<br />
how the problem was resolved or is being managed.<br />
By following the five steps outlined above, SP&M coordinators should be<br />
able to identify and resolve most ‘‘people problems.’’ That is a valuable service<br />
in its own right to an organization, and it can help people who are in danger<br />
of derailing get ‘‘back on track.’’<br />
Summary<br />
This chapter focused on refining the succession planning and management<br />
program. It summarized what was needed to prepare a program action plan,<br />
communicate the action plan, and counsel managers on succession planning<br />
and management problems—particularly those having to do with ‘‘people<br />
problems’’—unique to their areas of responsibility.<br />
To be successful, however, any succession planning and management program<br />
should be based on systematic analyses of present job requirements or
Refining the Program<br />
175<br />
competencies, future job requirements or competencies, present individual<br />
performance, and future individual potential. Conducting such analyses is not<br />
for the faint-hearted, the ill-prepared, or the uncommitted. These processes<br />
require hard work and diligence, as the next section of this book will show.
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PART<br />
III<br />
ASSESSING THE PRESENT AND THE FUTURE<br />
Part I<br />
Background Information About<br />
Succession Planning and Management<br />
Part IV<br />
Closing the “Developmental Gap”:<br />
Operating and Evaluating a Succession<br />
Planning and Management Program<br />
Part II<br />
Laying the Foundation for a<br />
Succession Planning and<br />
Management Program<br />
Part III<br />
Assessing the Present and the Future<br />
•Identify key positions.<br />
•Use approaches to determine work requirements in key positions.<br />
•Use full-circle, multirater assessment.<br />
•Appraise performance.<br />
•Create talent pools.<br />
•Identify key positions for the future.<br />
•Use approaches to determine future work requirements in key<br />
positions.
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C H A P T E R 8<br />
ASSESSING PRESENT WORK<br />
REQUIREMENTS AND INDIVIDUAL<br />
JOB PERFORMANCE<br />
Leaders must know the present before they can plan the future. 1 They must<br />
realistically view the organization’s strengths and weaknesses before they can<br />
navigate around future external threats and seize opportunities as they arise.<br />
That can be a daunting task because leaders are biased observers: they are,<br />
after all, accountable in large measure for an organization’s strengths and<br />
weaknesses. It is thus easy for them to overlook weaknesses, since the causes<br />
of those weaknesses may be rooted in their own past decisions; it is easy for<br />
them to overlook strengths, which they may take for granted. Managers, it has<br />
been shown, 2 will persist in an ill-fated course of action because they fall prey<br />
to the gambler’s fallacy, that ‘‘more effort will lead to a big payoff.’’ But some<br />
efforts never pay off; rather, they lead to mounting losses. That is why organizations<br />
replace leaders after a repeated string of failures.<br />
Many of the same basic principles apply to succession planning and management<br />
(SP&M). Before leaders can effectively plan for succession, they must<br />
be aware of the organization’s work requirements and the strengths and weaknesses<br />
of its leadership. Indeed, having the right person for the right job at the<br />
right time is a strategic issue of key importance that has long been a major<br />
challenge to top managers. But to know who those people are and what they<br />
must do, the organization must first be able to furnish answers to such questions<br />
as these:<br />
▲ What are the organization’s key positions?<br />
▲ What are the work requirements or competencies required in key positions?<br />
▲ How should individual performance be appraised?<br />
This chapter focuses on answering these questions. It thus emphasizes examining<br />
present conditions. The next chapter focuses on anticipating future<br />
conditions. Taken together, they are a starting point for long-term and systematic<br />
SP&M.<br />
179
180 A SSESSING THE P RESENT AND THE F UTURE<br />
Identifying Key Positions<br />
To achieve maximum benefits from a systematic succession planning program,<br />
begin by identifying the key positions. The reason for doing this is that key<br />
positions underscore and dramatize important work processes that must be<br />
carried out and results that must be continuously accomplished. Key positions<br />
warrant attention because they represent strategically vital leverage points affecting<br />
organizational success. When they are left vacant—or when the work is<br />
left undone, for whatever reason—the organization will not be able to meet<br />
or exceed customer expectations, confront competition successfully, or follow<br />
through on efforts of crucial long-term significance.<br />
Identifying Key Positions<br />
A key position exerts critical influence on organizational activities—operationally,<br />
strategically, or both. Key positions have traditionally been viewed as<br />
those at the pinnacle of the organization’s chain of command. The most obvious<br />
reason is that important decision making has been done at the top of most<br />
organizations and imposed downward. But, as decision making has become<br />
more decentralized, as a result of increasing employee involvement and the<br />
application of principles linked to high-involvement work organizations, key<br />
positions have become diffused throughout organizations. Hence, they may<br />
reside at many points on the organization chart.<br />
Key positions are not identical across organizations. There are several reasons<br />
why. One reason is that all organizations do not allocate work in exactly<br />
the same way. Positions sharing job titles in different organizations do not<br />
necessarily perform identical duties. A second reason is that top managers in<br />
different organizations do not share the same values. As a result, they may vest<br />
job incumbents with more or less responsibility, which is influenced by their<br />
own perceptions (and values) about which activities are most important. A<br />
third reason is that organizations do not share identical strengths and weaknesses<br />
or face identical environmental threats and opportunities. Hence, a key<br />
position in one organization may not be a key position in another. Key positions<br />
are thus unique to a single organization.<br />
Let’s focus on six ways to identify key positions:<br />
By the Consequences/Uproar Resulting from a Pending or Existing Vacancy<br />
When the organization lacks a key position incumbent—defined as someone<br />
occupying a key position at any level, in any function, or at any location—it is<br />
apparent because important decisions cannot be reached, orders cannot be<br />
shipped, production cannot proceed, customers’ needs cannot be satisfied, or<br />
bills are left unpaid. In short, a vacancy in a key position creates an uproar<br />
because an important activity is placed ‘‘on hold’’ until the right talent is se-
Assessing Present Work Requirements and Individual Job Performance<br />
181<br />
cured to make an informed decision, complete a process, or achieve results.<br />
This delay can prove costly, placing an organization at risk to competitors who<br />
do not face such a handicap. Possible results include loss of customers, market<br />
share, and (in the worst cases) bankruptcy.<br />
One way, then, to recognize a key position is by the consequences of—or<br />
uproar caused by—not filling a vacancy when it exists or is expected. I call<br />
this the uproar method of identifying key positions. Generally, the greater the<br />
uproar created by an existing or a pending vacancy, the greater the importance<br />
of that key position and the work process(es) over which it exerts influence.<br />
By Organization Charting<br />
Prepare a current organization chart. Show all functions. List the leader’s name<br />
in each function, if the organization is sufficiently small to make that possible.<br />
Then list the number of people assigned to carry out the function. Pose these<br />
questions: (1) ‘‘What does this function uniquely contribute to the organization’s<br />
mission?’’ and (2) ‘‘Could this function operate effectively if the leader<br />
were gone?’’<br />
The answer to the first question provides valuable clues about organizational<br />
processes. It should be expressed in terms of the inputs, transformational<br />
processes, and outputs of that function relative to the organization’s<br />
work. That tells why the function is important—and what it does to accomplish<br />
the results desired from it.<br />
The answer to the second question yields clues about key positions. If the<br />
answer is no, then the next question to ask is, ‘‘Why is that leader so valuable?<br />
What is it that makes him or her important—and potentially tough to replace?<br />
Does he or she possess specialized expertise or carry out specialized work<br />
duties?’’ (If so, then it is a key position.) ‘‘Do the staff members collectively<br />
assigned to that function lack the ability to achieve results in the absence of a<br />
leader?’’ (If so, then a potential replacement need has been identified that<br />
should be shored up.)<br />
If the answer is yes, then ask, ‘‘Why is the function able to operate without<br />
the leader? Are others particularly key to its operation?’’ If that is the case, then<br />
the leader does not occupy a key position, but one or more workers do.<br />
If this activity is carried to its natural conclusion, key positions should be<br />
easily identified on the organization chart. Each key position is tied to a critically<br />
important organizational function, result, or work process. A vacancy in<br />
any key position will represent a hole, a gap between an organizational requirement<br />
and the human talent needed to meet that requirement.<br />
By Questioning<br />
Most senior executives have a keen grasp of their areas of responsibility. Ask<br />
them what they regard as key positions within their own areas by posing a<br />
question like, ‘‘What positions in your area of responsibility are so important
182 A SSESSING THE P RESENT AND THE F UTURE<br />
that, if they suddenly became vacant, your part of the organization would face<br />
major problems in achieving results?’’ Ask for the titles of the positions to be<br />
listed, not the names of job incumbents. Then ask, ‘‘Why are these positions<br />
so important?’’ Don’t provide clues; rather, allow executives to furnish their<br />
own rationales. (That tactic is likely to lead to the best information.)<br />
By Historical Evidence<br />
Has the organization experienced crises or uproars in the past resulting from<br />
unexpected departures by key job incumbents? Use evidence of past uproars<br />
as indicators of where key positions are located. Scan personnel records to<br />
obtain the names and job titles of people who departed in the last few years.<br />
Then contact their former supervisors in the organization to find out which<br />
departures posed the greatest problems for the organization and why they<br />
posed problems. Were they in tough-to-fill positions? Did they possess unique,<br />
difficult-to-replace knowledge and skills? What was it exactly that made these<br />
losses so important? How was the uproar handled? If a vacancy occurred in<br />
the same position again, would it still cause an uproar? Why? Compile the<br />
answers to these questions as evidence of key positions.<br />
By Network Charting<br />
Network charting is a technique of communication analysis that has been used<br />
in identifying employment discrimination. 3 But its applications are potentially<br />
much more powerful in charting the decision-making process in organizations.<br />
The idea is a simple one: trace the path of communication flows during<br />
one or more decisions to answer such questions as ‘‘Who is included?’’ ‘‘Who<br />
is excluded?’’ and ‘‘Why are some individuals included or excluded?’’<br />
A key assumption of network charting is that decision-makers will seek<br />
information only from individuals who occupy important positions and/or<br />
who are viewed as credible, trustworthy, and knowledgeable about the issues.<br />
Significantly, it has also been shown that decision-makers prefer to include<br />
people like themselves—and exclude people unlike themselves—from decision-making<br />
processes. Hence, communication flows in the same way that succession<br />
decisions are often made—that is, through homosocial reproduction, 4<br />
the tendency of leaders to perpetuate themselves by sponsoring people who<br />
are in some way like themselves. As Rosabeth Moss Kanter describes the process,<br />
‘‘Because of the situation in which managers function, because of the<br />
position of managers in the corporate structure, social similarity tends to become<br />
extremely important to them. The structure sets in motion forces leading<br />
to the replication of managers as the same kind of social individuals. And the<br />
men who manage reproduce themselves in kind.’’ 5<br />
Network charting can be carried out by interviewing people or by retracing<br />
communication flows. But another way, though time-consuming, is to shadow a<br />
key decision-maker to determine firsthand what positions and what individuals
Assessing Present Work Requirements and Individual Job Performance<br />
183<br />
are included in making a decision and why they are included. In this application<br />
of network charting, the aim is not to uncover employment discrimination;<br />
rather, it is to determine which positions are considered key to decision<br />
making in each part of the organization. The results should yield valuable information<br />
about key positions in—and the route of work processes through—<br />
the organization.<br />
By Combination<br />
A sixth and final approach is to combine two or more other approaches listed<br />
above. Academic researchers call this triangulation, 6 since it involves verifying<br />
information by double-checking it from multiple sources. Radar and sonar operators<br />
originated the approach, I believe, as a way to obtain a definite fix on<br />
an object. Practically speaking, however, many organizations have neither time<br />
nor resources to double-check key positions. Often, only one approach is<br />
used.<br />
What Information Should the Organization Maintain About Key<br />
Positions?<br />
Once key positions have been identified, additional questions will present<br />
themselves. For example:<br />
▲ Who occupies those key positions now? What are their qualifications?<br />
What background, education, experience, or other specialized knowledge<br />
did they bring to their positions?<br />
▲ What are the work requirements in key positions? (See the next section<br />
below.)<br />
▲ When are those key positions likely to become vacant? Can some key<br />
vacancies be predicted based on the announced retirement or career<br />
plans of key position incumbents?<br />
▲ Where are key positions located in the organization? (Answer that question<br />
based on the organization’s structure, job categories, and geographical<br />
locations.)<br />
▲ How is performance appraised in the organization? How well do performance<br />
appraisal practices match up to information about work requirements<br />
or competencies by position?<br />
▲ How well are the key position incumbents presently performing? Did<br />
their backgrounds, education, and experience properly equip them to<br />
perform? If not, what are they lacking?<br />
▲ How did key job incumbents secure their positions? Were they groomed<br />
to assume their positions, recruited from outside, transferred from<br />
within, or did they reach their positions through other means?
184 A SSESSING THE P RESENT AND THE F UTURE<br />
By answering these questions, the organization can begin to establish an information<br />
system to track key positions, key position incumbents, and individual<br />
performance.<br />
Three Approaches to Determining Work Requirements in<br />
Key Positions<br />
Once key positions have been identified, direct attention to determining the<br />
work requirements in those positions. After all, the only way that individuals<br />
can be prepared as replacements for key positions is to clarify first what the<br />
key position incumbents do and what kind of characteristics they possess. At<br />
least three ways may be used to do that, and they are described below.<br />
1. Conducting Job and Task Analysis<br />
Job analysis summarizes or outlines the activities, responsibilities, duties, or<br />
essential functions of a job. Task analysis goes a step beyond job analysis to<br />
determine what must be done to carry out each activity or meet each responsibility,<br />
duty, or essential function. The result of a job analysis is called a job<br />
description; the result of a task analysis is called a task inventory. Some authorities<br />
distinguish between the terms job and position:<br />
A job consists of a group of related activities<br />
and duties. Ideally, the duties of a job should<br />
consist of natural units of work that are similar<br />
and related. They should be clear and distinct<br />
from those of other jobs to minimize misunderstanding<br />
and conflict among employees and<br />
to enable employees to recognize what is expected<br />
of them. For some jobs, several employees<br />
may be required, each of whom will<br />
occupy a separate position. A position consists<br />
of different duties and responsibilities<br />
performedbyonlyoneemployee. 7<br />
It is thus important to distinguish between a job description, which provides<br />
information about an entire job category (such as supervisors, managers,<br />
or executives), and a position description, which provides information unique<br />
to one employee. In most cases, the focus of determining work requirements<br />
for SP&M is on positions, since the aim is to identify work requirements<br />
unique to key positions.
Assessing Present Work Requirements and Individual Job Performance<br />
185<br />
What Is a Position Description?<br />
A position description summarizes the duties, activities, or responsibilities of<br />
a position. Hence, it literally describes a position in one organizational setting.<br />
It answers this question: ‘‘What are incumbents in the position expected to do<br />
in the organization?’’<br />
No universal standards exist either for job descriptions or for position descriptions.<br />
8 In most organizations, however, position descriptions list at least<br />
the title, salary or wage level, location in the organization, and essential job<br />
functions. An essential job function, a legal term used in the Americans with<br />
Disabilities Act, is an activity that must be conducted by a position incumbent.<br />
More specifically, it ‘‘is [a job activity] that’s fundamental to successful performance<br />
of the job, as opposed to marginal job functions, which may be<br />
performed by particular incumbents at particular times, but are incidental to<br />
the main purpose of the job. If the performance of a job function is only a<br />
matter of convenience, and not necessary, it’s a marginal function.’’ 9<br />
Some organizations add other features to job descriptions, and the same<br />
features may be added to position descriptions as well. These additions may<br />
include, for instance, the approximate time devoted to each essential job function,<br />
the percentage of a position’s total time devoted to each essential job<br />
function, the relative importance of each essential job function to successful<br />
performance, and a job specification listing the minimum qualifications required<br />
for selection.<br />
How Is Position Analysis Conducted?<br />
Position analysis is conducted in the same way as job and task analysis. As<br />
Carlisle notes, ‘‘the process of analyzing jobs and tasks involves at least three<br />
key steps. First, the job or task is broken down into its component parts. Second,<br />
the relationships between the parts are examined and compared with<br />
correct principles of performance. Third, the parts are restructured to form an<br />
improved job or task, and learning requirements are specified.’’ 10<br />
Use the worksheet appearing in Exhibit 8-1 as a guide for preparing a current<br />
key position description. For ideas about what essential job functions to<br />
list, see The Dictionary of Occupational Titles (published by the U.S. Department<br />
of Labor), works on the Americans with Disabilities Act, 11 and references<br />
about management job descriptions. 12<br />
Advantages and Disadvantages of Position Descriptions<br />
Position descriptions are advantageous for identifying work requirements for<br />
three reasons. First, most organizations have at least job descriptions, which<br />
can be an important starting point on which to base more individualized position<br />
descriptions. Second, position descriptions can be the basis for making<br />
and justifying many personnel decisions—including selection, appraisal, and
186 A SSESSING THE P RESENT AND THE F UTURE<br />
Exhibit 8-1. A Worksheet for Writing a Key Position Description<br />
Directions: Give careful thought to the process of writing this position description,<br />
since it can be critically important in recruiting, selecting, orienting, training, appraising,<br />
and developing a job incumbent for a key position. The best approach is<br />
to ask the key position incumbent to write the description and then to review it<br />
several levels up, down, and across the organization. (In that way, it should be<br />
possible to obtain valuable information about the desired results necessary for this<br />
position at present—some of which even the current position incumbent may be unaware<br />
of.) For now, focus on what the position incumbent is presently doing and what<br />
others in the organization want the key position incumbent to be doing in the future.<br />
Add paper if necessary.<br />
Title: (Fill in the position title)<br />
Salary Level: (Note the present pay grade)<br />
Organizational Unit/Department: (Note the present placement of the position in<br />
the organizational structure)<br />
Immediate Supervisor: (Note to whom the position incumbent presently reports on the<br />
organization chart by title)<br />
Position Summary: (In one or two sentences, summarize the purpose—or mission<br />
statement—for this position. Answer this question: why does it exist?)<br />
Position Duties/Responsibilities/Activities/Key Results/Competencies/Essential Functions:<br />
(Make a list in the left column below of the most important position duties,<br />
responsibilities, activities, key results, competencies, or essential functions. If necessary,<br />
use a separate sheet to draft the list and then record the results of your deliberations<br />
in priority order in the space below. Be sure to list the most important duty,<br />
responsibility, activity, key result, or essential function first. Begin each statement with<br />
an action verb. Then, in the right column, indicate the approximate percentage of<br />
time devoted to that activity.)<br />
List of Position Duties/<br />
Responsibilities/Activities/<br />
Key Results/Essential Functions:<br />
Approximate % of<br />
Time Devoted to<br />
Each:
Assessing Present Work Requirements and Individual Job Performance<br />
187<br />
training—and not just decisions linked to succession planning and management.<br />
Third and finally, legislation—particularly the Americans with Disabilities<br />
Act—has made written expressions of work requirements important as<br />
legal evidence of what is necessary to perform the work. 13<br />
However, position descriptions are by no means foolproof. First, they tend<br />
to focus on activities, not so much on results. Second, they may leave out<br />
important personal characteristics that are crucial to successful job performance.<br />
Third, they date quickly. Keeping them updated can be a time-consuming<br />
chore.<br />
2. Identifying Competencies and Developing a Competency Model<br />
Competency identification is a possible step beyond job and task analysis as a<br />
means of clarifying key position requirements. In this context, competency<br />
refers to ‘‘an underlying characteristic of an employee (that is, motive, trait,<br />
skill, aspects of one’s self-image, social role, or a body of knowledge) which<br />
results in effective and/or superior performance in a job’’ 14 ; competency identification<br />
pinpoints competencies; and a competency model ‘‘includes those<br />
competencies that are required for satisfactory or exemplary job performance<br />
within the context of a person’s job roles, responsibilities and relationships in<br />
an organization and its internal and external environments.’’ 15<br />
Competency models have emerged as the mainstream approach used in<br />
many organizations to integrate all facets of human resource management.<br />
Competency identification was described at greater length in Chapter 4. Most<br />
well-known companies have based their succession programs on competency<br />
models, which become blueprints of the talent to be developed.<br />
3. Rapid Results Assessment<br />
A new approach to competency modeling is needed to maximize the strengths<br />
and minimize the weaknesses of traditional approaches. Such a new approach<br />
may involve the marriage of a traditional approach to competency assessment,<br />
such as McLagan’s Flexible Approach, 16 with the so-called DACUM method.<br />
DACUM is short for Developing A Curriculum. 17 It has been widely used in<br />
job and task analysis for technical positions and in establishing occupational<br />
curricula at community colleges. Seldom, however, has it been described as a<br />
means by which to determine work requirements in management or professional<br />
positions.<br />
To use DACUM in its traditional sense, select a facilitator who is trained in<br />
the approach. Convene a panel consisting of eight to twelve people who are<br />
expert in the job. Then take the following steps 18 :
188 A SSESSING THE P RESENT AND THE F UTURE<br />
1. Orient the committee to DACUM.<br />
2. Review the job or occupational area of concern.<br />
3. Identify the general areas of responsibility of the job.<br />
4. Identify the specific tasks performed in each area of responsibility.<br />
5. Review and refine task and duty statements.<br />
6. Sequence task and duty statements.<br />
7. Identify entry-level tasks.<br />
The result of a typical DACUM panel is a detailed matrix illustrating work<br />
activities. They are arranged in order of difficulty, from the simplest to the<br />
most complex activities. In DACUM’s traditional application, panel members<br />
approach descriptions of ‘‘personality characteristics’’ as an additional activity.<br />
For instance, at the conclusion of the DACUM session panel members may be<br />
asked a question such as, ‘‘What personal characteristics describe an effective<br />
job incumbent?’’ That question should elicit responses from panel members<br />
such as ‘‘Punctuality,’’ ‘‘Good attendance,’’ ‘‘Ability to work harmoniously<br />
with coworkers,’’ or ‘‘Dresses appropriately.’’ Rarely are such characteristics<br />
linked to specific, measurable behaviors, though they may be critical to successful<br />
job performance.<br />
In practice, a DACUM panel usually meets in a quiet room for one or more<br />
days. The facilitator asks panelists to list work activities, in round-robin fashion,<br />
in no particular order. Each activity is written with Magic Marker on a<br />
sheet of paper and posted on a blank wall at the front of the room. Because<br />
panelists can list activities quickly, most DACUM facilitators need one or two<br />
confederates to assist them by writing the activities and posting them on the<br />
wall. Panelists who are unable to think of an activity are skipped. The process<br />
continues until all the panelists exhaust activities to list.<br />
At that point, the facilitator calls a break. With the help of confederates—<br />
and perhaps one or more panelists or other job experts—the facilitator devises<br />
descriptive categories for the activities and groups related activities. When finished,<br />
the facilitator reconvenes the panel. Panelists add, subtract, or modify<br />
categories and verify activities. Finally, they sequence categories and activities<br />
from most simple to most complex. These steps closely resemble classic brainstorming,<br />
which consists of two steps: idea generation and idea evaluation. 19<br />
To use DACUM as a tool for competency assessment, facilitators should<br />
take additional steps. Once a DACUM job matrix has been completed and verified,<br />
facilitators should adjourn the panel and plan to convene at another time.<br />
Once the panel is reconvened, facilitators should present panelists with the<br />
DACUM job matrix, either as an individualized handout or as a large wall chart.<br />
Facilitators should then progress around the room, focusing panelists’ attention<br />
on each cell of the job matrix, and asking panelists to (1) list underlying<br />
motives, traits, aspects of self-image, social roles, or body of knowledge that<br />
effective job incumbents should exhibit to carry out that activity; and (2) work
Assessing Present Work Requirements and Individual Job Performance<br />
189<br />
outputs or results stemming from each activity. The answers should be written<br />
inside each cell.<br />
Once again, the panel should be adjourned briefly. As in the first panel<br />
meeting, facilitators should make an effort to eliminate duplication and economically<br />
list personal characteristics and work outputs for each activity. When<br />
facilitators are finished, they should again reconvene the panel and seek verification<br />
and consensus on the results. If the meeting runs too long, facilitators<br />
may adjourn and follow up by written survey, thereby turning traditional brainstorming<br />
into a modified delphi process. 20<br />
The value of this approach should be apparent. First, it is much faster than<br />
traditional competency modeling. (That is a major advantage, and it is worth<br />
emphasizing.) Second, this approach—like traditional DACUM—has high face<br />
validity because it uses experienced job incumbents (or other knowledgeable<br />
people). It should gain ready acceptance in the organization. Third, it permits<br />
the personal involvement of key decision-makers, thereby building the ownership<br />
that stems from participation. Fourth and finally, it enjoys the key advantage<br />
of a competency-based approach in that the modified DACUM moves<br />
beyond the traditional focus on work activities or tasks to include descriptions<br />
of underlying characteristics and/ or outputs.<br />
Of course, this new approach—which I have chosen to call rapid results<br />
assessment—does have its disadvantages. The results do not have the research<br />
rigor of other competency-assessment approaches. Hence, rigor is sacrificed<br />
for speed. Second, the results of the approach will depend heavily on the<br />
credibility of the individual panelists. If inexperienced people or poor performers<br />
participate, the results will be viewed with suspicion.<br />
Rapid results assessment can provide valuable information for succession<br />
planning and management. If the assessment process is focused on key positions—and<br />
DACUM panels include immediate superiors, peers, incumbents,<br />
and even subordinates—it can yield powerful information about role expectations<br />
for incumbents in these positions. It can also provide the basis, as<br />
DACUM does, to select, appraise, train, reward, and develop people who are<br />
being groomed for key positions.<br />
Using Full-Circle, Multirater Assessments<br />
Since the publication of the first edition of this book in 1994, many organizations<br />
have begun to use full-circle, multirater assessments as a means to appraise<br />
an individual’s present performance or future potential. 21 (And it is<br />
worth emphasizing that those are two different things. Remember: Successful<br />
performance in a current position is no guarantee of success at a higherlevel<br />
position, for the simple reason that requirements differ by level.) Such<br />
assessments—sometimes called 360-degree assessments because they examine<br />
an individual from a full circle around him or her—are useful ways to collect
190 A SSESSING THE P RESENT AND THE F UTURE<br />
much data from organizational superiors, subordinates, peers or colleagues,<br />
and even customers, suppliers, distributors, and family members. They usually<br />
indicate how well an individual is performing (or has the potential to perform)<br />
when compared to competency models or work requirements. Many full-circle,<br />
multirater assessment questionnaires can be purchased from commercial vendors<br />
or accessed online, though off-the-shelf solutions should be used cautiously<br />
because they are not corporate-culture specific.<br />
Questions to Consider<br />
But many questions arise when decision-makers contemplate using full-circle,<br />
multirater assessments. Among them are the following:<br />
1. Who will be assessed, and by whom will they be assessed?<br />
2. What will be assessed? Will it be present performance, future potential,<br />
or both?<br />
3. When will the assessment occur?<br />
4. Why is the assessment being conducted? Since full-circle, multirater assessment<br />
is expensive, will the benefits in improved accuracy and credibility<br />
of results outweigh the costs?<br />
5. How will the assessment be conducted? Will it be conducted online, on<br />
paper, or by a combination? What will be done with the results, how<br />
will the results be interpreted and fed back to the individuals, and how<br />
will they be used?<br />
These questions should be answered before the organization undertakes<br />
the use of full-circle, multirater assessments. (Use the worksheet appearing in<br />
Exhibit 8-2 to consider these questions.)<br />
Advantages and Disadvantages of Full-Circle, Multirater Assessments<br />
There are many advantages to full-circle, multirater assessments. They consolidate<br />
feedback from many people surrounding an individual about his or her<br />
present performance or future potential. The feedback alone is powerful in<br />
creating an impetus for change and individual development. Moreover, the<br />
ratings have much power in tapping into multiple perspectives, since (as the<br />
old saying goes) ‘‘what you think depends on where you sit in the organization.’’<br />
But there are disadvantages to full-circle, multirater assessments, and they<br />
should be considered before the organization incurs the expense of using<br />
them. First, these assessments can be expensive and are thus worthwhile only<br />
when decision-makers know what they want and why they want it. Second, if<br />
individuals are rated against criteria such as competencies or work require-
Assessing Present Work Requirements and Individual Job Performance<br />
191<br />
Exhibit 8-2. A Worksheet for Considering Key Issues in Full-Circle,<br />
Multirater Assessments<br />
Directions: When decision-makers begin thinking about using full-circle, multirater<br />
assessment, there are many issues they should clarify at the outset.<br />
Use this worksheet to help guide their thinking. For each question appearing in the<br />
left column below, take notes about their answers in the right column. There are no<br />
‘‘right’’ or ‘‘wrong’’ answers in any absolute sense, of course. But it is important to<br />
clarify the answers to these questions.<br />
Questions<br />
1. Who will be assessed, and by whom<br />
will they be assessed?<br />
2. What will be assessed? Will it be<br />
present performance, future<br />
potential, or both?<br />
3. When will the assessment occur?<br />
4. Why is the assessment being<br />
conducted?<br />
5. How will the assessment be conducted?<br />
(Will it be conducted online,<br />
on paper, or by a combination?)<br />
6. What will be done with the results,<br />
how will the results be interpreted<br />
and fed back to the individuals, and<br />
how will they be used?<br />
Answers<br />
ments that are not unique to the corporate culture (as is true if off-the-shelf or<br />
online instruments are used without modification), the results may not be too<br />
useful or meaningful. In fact, the results may be misleading. After all, performance<br />
and potential are influenced by the corporate cultural context in which<br />
individuals perform. Third, when large numbers of people are subjected to<br />
these assessments, the task of data analysis can be daunting. (Consider: one<br />
person may have as many as twelve raters. If 100 people are subjected to assessment,<br />
that means 1,200 ratings must be compiled and fed back individually.)<br />
Feeding Back the Results of Full-Circle, Multirater Assessments<br />
Since the last edition of this book was published, I have had ample opportunity<br />
to conduct full-circle, multirater assessments during consulting engage-
192 A SSESSING THE P RESENT AND THE F UTURE<br />
ments. And one insight I have gained from those experiences is that it is not<br />
so much the initial design of the assessment that is so important as it is the<br />
feedback session that occurs after the assessment. When the full-circle, multirater<br />
assessment of an individual is finished, what is done with that? That is<br />
the key question, and it is worthy of some consideration.<br />
The results of a full-circle, multirater assessments can be helpful in pinpointing<br />
present performance gaps or future developmental gaps. The feedback<br />
session—which can occur in a meeting conducted by an immediate<br />
supervisor, HR professional, external consultant, or some combination of all<br />
of these—must be well planned. The goal should be to establish a plan for<br />
improvement (if the meeting focuses on present performance), an individual<br />
learning plan (if the meeting focuses on future potential), or both.<br />
Begin the meeting by presenting the results of the assessment. Start with<br />
small talk to set the person at ease. (If you wish, provide the assessment to the<br />
person before the meeting so that he or she has had time to study it.) Then<br />
provide the feedback, hitting the high points. Walk the person through the<br />
results and then offer interpretations. Be sure to mention strengths as well as<br />
weaknesses. If you wish, you may ask the person what he or she believes the<br />
results might mean, what could be done about them, and what actions should<br />
be taken.<br />
It is worth noting that individuals cannot necessarily identify the best strategies<br />
for developing themselves for the future. That is input that the immediate<br />
supervisor should provide and that is why it is worth having the immediate<br />
supervisor in the room if the feedback session on the full-circle, multirater<br />
assessment is provided by an HR professional or external consultant. The<br />
immediate supervisor is best positioned to provide input about the corporateculture-specific<br />
developmental assignments that could build essential competencies,<br />
and the immediate supervisor is also best positioned to describe<br />
specific situations that may explain an individual’s ratings. When the meeting<br />
is over, a development plan should have been agreed to. It can then be filed<br />
or placed on an online system for later review.<br />
The Future of Full-Circle, Multirater Assessments<br />
It is likely that full-circle, multirater assessment will only be used more frequently<br />
in the future. For that reason, those managing SP&M programs should<br />
become familiar with sources that describe how to establish and use them. 22<br />
Appraising Performance and Applying Performance<br />
Management<br />
For an SP&M program to be effective, it must be based on information about<br />
work requirements in key positions and about the performance of incumbents<br />
and prospective successors. Hence, employee performance appraisal should
Assessing Present Work Requirements and Individual Job Performance<br />
193<br />
be an important source of information for SP&M. But what is performance<br />
appraisal, and how should it be linked to SP&M?<br />
Defining Performance Appraisal<br />
Performance appraisal is the process of determining how well individuals are<br />
meeting the work requirements of their jobs. Just as most organizations prepare<br />
job descriptions to answer the question ‘‘What do people do?’’ most<br />
organizations also prepare performance appraisals to answer the question<br />
‘‘How well are people performing?’’ It is important to emphasize that performance<br />
appraisals are properly viewed within the context of performance management,<br />
23 which is the process of creating a work environment in which<br />
people want to perform to their peak abilities and are encouraged to develop<br />
themselves for the future. (See Exhibit 8-3.) Like so many terms in the HR field,<br />
performance management can be a term in search of meaning and can refer<br />
(variously) to after-the-fact performance appraisal, before-the-fact performance<br />
planning, during-performance feedback, and the whole cycle of planning<br />
for performance, identifying and knocking down performance barriers, providing<br />
feedback during performance, and giving feedback upon the completion<br />
of performance.<br />
Performance appraisals are commonly used to justify pay raises, promotions,<br />
and other employment decisions. They are also critically important for<br />
SP&M, since few organizations will advance individuals into key positions<br />
when they are not performing their present jobs adequately.<br />
While a fixture of organizational life, employee performance appraisal has<br />
not been immune to criticism. Indeed, it is rare to find managers who will<br />
enthusiastically champion the performance appraisal practices of their organizations.<br />
In recent years, appraisals have been increasingly prone to litigation. 24<br />
Moreover, appraisals have been attacked by no less than the late curmudgeonly<br />
guru of Total Quality Management, W. Edwards Deming. Deming faulted<br />
employee performance appraisal for two primary reasons. First, Deming<br />
believed that performance appraisal leads to management by fear. Second,<br />
appraisal ‘‘encourages short-term performance at the expense of long-term<br />
planning.’’ 25 It prompts people to look good in the short run, with potentially<br />
devastating long-term organizational effects.<br />
The central point of Deming’s argument is that people live up to the expectations<br />
that their superiors have for them. That is the Pygmalion effect, which<br />
takes its name from the ancient artist who fell in love with his own sculpted<br />
creation of the woman Galatea. The Pygmalion effect asserts that managers<br />
who believe that their employees are performing effectively will create a selffulfilling<br />
prophecy. The underlying assumption, then, is that the world is influenced<br />
by viewers’ beliefs about it.<br />
When performance appraisal is conducted in a highly critical manner, it
194 A SSESSING THE P RESENT AND THE F UTURE<br />
Exhibit 8-3. The Relationship Between Performance Management and<br />
Performance Appraisal<br />
Performance management addresses this question: What is necessary to<br />
encourage performance now and in the future?<br />
Performance Management<br />
(focuses on all aspects of the<br />
work environment, work, and<br />
worker that impact on<br />
performance and can be past,<br />
present, or future oriented)<br />
Performance Appraisal<br />
(usually focuses on past job<br />
performance and is used to<br />
make decisions on pay,<br />
promotion, and other job<br />
changes)<br />
Performance appraisal addresses this question: How well are people<br />
performing their jobs?<br />
has the potential to demotivate and demoralize people. Indeed, research evidence<br />
indicates that performance appraisal interviews focusing on ‘‘what people<br />
are doing wrong’’ can actually lead to worse performance.<br />
How Should Performance Appraisal Be Linked to Succession Planning<br />
and Management?<br />
Despite harsh attacks from critics, performance appraisal is likely to remain a<br />
fixture of organizational life. One reason is that, despite their flaws, written<br />
appraisals based on job-related performance criteria are superior to informal,<br />
highly subjective appraisals at a time when employees are increasingly prone<br />
to litigate. In the absence of written forms and formal procedures, managers<br />
do not cease appraising employees; rather, they simply do it in a less struc-
Assessing Present Work Requirements and Individual Job Performance<br />
195<br />
tured fashion. Worse yet, they may face no requirement to provide employees<br />
with feedback—with the result that they can never improve. Indeed, few can<br />
dispute that employees will not improve their performance—or develop in<br />
line with succession plans—if they have received no timely, concrete, and specific<br />
feedback on how they are doing or what they should do to improve.<br />
While annual performance appraisals are no substitute for daily feedback, they<br />
should be used together to help employees develop. 26 Otherwise, the organization<br />
will have no records of employee performance, other than the faulty<br />
memories and unarticulated impressions of supervisors and other employees,<br />
on which to base pay, promotion, transfer, or other decisions.<br />
There are many approaches to performance appraisal, and much has been<br />
written on the subject. 27 (Different types of appraisals are summarized in Exhibit<br />
8-4.) To be effective, however, performance appraisal should be based as<br />
closely as possible on the work that employees do. Used in conjunction with<br />
individual potential assessments—which compare individuals to future job assignment<br />
possibilities or future competencies—they can be a powerful tool<br />
for employee improvement and development. For that reason, the best appraisal<br />
is one that examines employee performance point-by-point to present<br />
responsibilities of the present competencies.<br />
One way to do that is to begin with a position description. Employees<br />
should then be appraised against each activity. In this way, the organization<br />
can maintain precise and detailed records of employee performance in each<br />
facet of the individual’s job; and the individual will receive specific feedback<br />
about how well he or she is performing. The problem is that such appraisals<br />
can be time-consuming to write and conduct. And, in the case of individuals<br />
who are performing poorly, their immediate superiors must take the time to<br />
explain what needs to be improved and how it should be improved. To save<br />
time, some organizations attempt to develop simple, easy-to-fill-out appraisals<br />
to ease the paperwork burden on supervisors. Unfortunately, the easier an<br />
appraisal is to fill out, the less useful it is in providing feedback to employees.<br />
To solve that problem, try developing free-form appraisals that use job<br />
descriptions themselves—or competencies—as the basis for appraisal. (See Exhibit<br />
8-5 for a worksheet to help prepare such an appraisal.) Another approach<br />
is to develop appraisals so that they are geared to future improvement rather<br />
than past performance. In that way, they are focused less on what employees<br />
are doing wrong and more on what they can do right. If that approach is<br />
followed consistently, it can provide useful information to employees about<br />
what they should do to prepare themselves for the future—and qualify for<br />
succession.<br />
Creating Talent Pools: Techniques and Approaches<br />
A talent pool is a group of workers who are being prepared for vertical or<br />
horizontal advancement. Vertical advancement usually means promotion up<br />
(text continues on page 199)
196 A SSESSING THE P RESENT AND THE F UTURE<br />
Exhibit 8-4. Approaches to Conducting Employee Performance Appraisal<br />
Approach Focus Brief Description<br />
Global Rating Focuses on the individu- The appraiser is asked to charal’s<br />
overall job perform- acterize an individual’s overall<br />
ance.<br />
job performance on a single<br />
scale or in a single essay response.<br />
Chief Advantage:<br />
Appraisers can make responses<br />
quickly.<br />
Chief Disadvantage:<br />
Performance is more complex<br />
than a single rating can<br />
indicate.<br />
Trait Rating Focuses on traits related Appraisers are asked to charto<br />
the individual’s per- acterize an individual’s job<br />
formance. Examples of performance over a specific<br />
traits might include ‘‘ini- time span using a series of<br />
tiative’’ or ‘‘timeliness.’’ traits. Often, trait ratings are<br />
scaled from ‘‘excellent’’<br />
through ‘‘unacceptable.’’ The<br />
appraiser is asked to check an<br />
appropriate point on the scale.<br />
However, traits can also be assessed<br />
by an essay response in<br />
which the appraiser is asked to<br />
write a narrative about the individual’s<br />
performance relative<br />
to the trait.<br />
Chief Advantage:<br />
Appraisers can make responses<br />
quickly.<br />
Chief Disadvantage:<br />
Traits can have different<br />
meanings, so consistency of<br />
rating and job-relatedness<br />
of traits may be critical issues<br />
to deal with.
Assessing Present Work Requirements and Individual Job Performance<br />
197<br />
Dimensions/ Focuses on each job ac- Think of a dimensional rating<br />
Activity Rating tivity, duty, responsibility, as a ‘‘job description that has<br />
or essential function. been given scales to assess<br />
performance.’’ Appraisers are<br />
asked to rate individual performance<br />
on each job activity,<br />
duty, responsibility, or essential<br />
job function. Responses<br />
may be provided by checking<br />
a mark on a scale or by writing<br />
an essay.<br />
Chief Advantage:<br />
This approach to appraisal<br />
makes a deliberate effort to<br />
tie performance appraisal to<br />
job duties, thereby ensuring<br />
job-relatedness.<br />
Chief Disadvantage:<br />
To work effectively, both appraiser<br />
and performer must<br />
agree in advance on the duties.<br />
That means job descriptions<br />
must be updated<br />
regularly, and that can become<br />
time-consuming.<br />
Behaviorally Focuses on job behav- A BARS performance appraisal<br />
Anchored iors—observable activ- typically consists of 5 to 10<br />
Rating Scales ities—distinguishing vertical scales that are devel-<br />
(BARS) exemplary from average oped through a critical inciperformers.<br />
dent process to distinguish<br />
effective from ineffective performance.<br />
Each scale represents<br />
actual performance. A<br />
BARS rating system is often<br />
compatible with a competency-based<br />
approach.<br />
Chief Advantage:<br />
Since each BARS is tied directly<br />
to job activities, this<br />
approach to performance<br />
(continues)
198 A SSESSING THE P RESENT AND THE F UTURE<br />
Exhibit 8-4. (continued)<br />
Approach Focus Brief Description<br />
appraisal enjoys high face<br />
validity. It can also lead to<br />
improved job performance<br />
by clarifying for performers<br />
exactly what behavior is desirable<br />
and undesirable.<br />
Chief Disadvantage:<br />
To work effectively, BARS requires<br />
considerable time<br />
and effort to devise. That<br />
can exceed the resources—or<br />
commitment—of<br />
many<br />
organizations.<br />
Management Focuses on the results of Before the appraisal period<br />
by Objectives job performance rather begins, the appraiser and per-<br />
(MBO) than processes to former jointly agree upon job<br />
achieve results.<br />
results desired. At the end of<br />
the appraisal period, the results<br />
are compared to the objectives<br />
established at the<br />
outset of the appraisal period.<br />
Chief Advantages:<br />
The focus is on results rather<br />
than on methods of achieving<br />
them. Both appraiser<br />
and performer are involved<br />
in establishing performance<br />
objectives.<br />
Chief Disadvantages:<br />
For the appraiser and performer<br />
to reach agreement,<br />
much time may be required.<br />
Writing performance objectives<br />
can turn the process<br />
into a ‘‘paper mill.’’
Assessing Present Work Requirements and Individual Job Performance<br />
199<br />
Exhibit 8-5. A Worksheet for Developing an Employee Performance<br />
Appraisal Linked to a Position Description<br />
Directions: Use this worksheet to develop a ‘‘free-form’’ employee performance appraisal<br />
that is based specifically on the position description. In the left column below,<br />
indicate what the position description indicates are the duties, activities, responsibilities,<br />
key result areas, competencies, or essential job functions. Then, in the right<br />
column, indicate how performance in the position may be measured.<br />
What are the position’s activities,<br />
duties, responsibilities? (List them from<br />
an up-to-date position description.)<br />
How should performance be measured<br />
for each activity, duty, or responsibility?<br />
(Indicate appropriate ways to measure<br />
successful performance.)<br />
the organization’s chain of command. Of course, in recent years, promotions<br />
have been diminishing in number. Horizontal advancement usually means<br />
that the individual’s competencies are enhanced so that he or she has a<br />
broader scope of knowledge, skills, and abilities in keeping with the organization’s<br />
direction or his or her occupation.<br />
The use of talent pools is one reason that SP&M is different from replacement<br />
planning. Instead of identifying only one or several backups for key positions,<br />
as is common in replacement planning, the idea of talent pools is to<br />
create as many backups as possible among people who are willing to develop<br />
themselves. (Of course, there are cost-benefit implications to committing to<br />
talent pools. Organizational leaders should not promise them if they are not<br />
willing to pay for them.)<br />
To create talent pools, organizations should possess competency models<br />
by departments, job categories, hierarchical levels, or occupations. The competency<br />
models may describe present competencies or desired future competencies.<br />
Also important, as described in Chapter 4, are value statements that<br />
indicate desired corporate values or desired ethical conduct.
200 A SSESSING THE P RESENT AND THE F UTURE<br />
Begin the process of creating a talent pool by clarifying targeted groups.<br />
Answer such questions as these:<br />
▲ Who is included?<br />
▲ What is a talent pool? How many talent pools should exist in the organization?<br />
▲ When is each talent pool to be formed?<br />
▲ Where is each talent pool to be located? (What is its geographical<br />
scope?)<br />
▲ Why is each talent pool desirable?<br />
▲ How will the talent pool be analyzed for current bench strength and<br />
desired future bench strength, and how will the status of each talent<br />
pool be tracked and assessed?<br />
▲ How will individuals in the talent pool be developed for the future?<br />
There are as many ways to define talent pools as there are to define competency<br />
models. In other words, it is possible to have talent pools by department,<br />
by hierarchical level on the organization’s chain of command, by job category,<br />
by region, by occupation, and by other means.<br />
It is worth emphasizing that, if talent pools are formed, no one person<br />
should be designated as a successor for a key position. Instead, the logic is<br />
that all people in the talent pool will be developed in line with present and<br />
future organizational and individual needs. To be effective, a talent pool<br />
should be paired with competency models, appropriate performance management<br />
practices to encourage individual development and performance, appropriate<br />
potential assessment strategies, and appropriate developmental efforts.<br />
When a vacancy occurs, the individuals compete. Instead of giving the job to<br />
those with the longest time in position or those who are personal favorites of<br />
immediate supervisors, individuals are then prepared to compete on the basis<br />
of demonstrated track records in performing their work and developing themselves.<br />
Thinking Beyond Talent Pools<br />
It is an intriguing question to ask ‘‘What is beyond talent pools?’’ After all,<br />
some organizational leaders have not even committed to develop everyone<br />
who is willing to be developed, which is the fundamental philosophy that<br />
underlies talent pooling. But for those organizations that have committed to<br />
talent pooling and have had some experience with it, opportunities may exist<br />
to push the concept further.<br />
One way to do that is to move away from thinking about developing people<br />
to meet the minimum requirements for positions. 28 Instead, a goal may be to<br />
leverage the talent base of the organization by developing people to the level<br />
of exemplary performers. (Of course, that assumes that organizational leaders
Assessing Present Work Requirements and Individual Job Performance<br />
201<br />
know who the exemplary performers are, based on objective performance<br />
measures rather than perceptions that may be biased.) To clarify the point by<br />
example, suppose the organization commits to develop supervisors to department<br />
managers. Any supervisor who wishes to join a program for that purpose<br />
is participating in a talent pooling effort. But suppose the organization’s leaders<br />
decide that they do not want to ‘‘set the bar’’ at the lowest level needed to<br />
qualify for consideration but rather at the highest level. To that end, they will<br />
need to know what distinguishes the best-in-class (exemplary) department<br />
managers from those who are merely fully successful.<br />
Why would an organization’s leaders commit to do this? The answer seems<br />
clear. Exemplary performers may be as much as twenty times more productive<br />
than their fully successful counterparts. If the organization could get more<br />
exemplary performers, then the organization would be more competitive, efficient,<br />
and effective.<br />
There is yet another possible way to move beyond talent pooling. Many<br />
talent pooling efforts focus only on building job competencies. But if that<br />
notion is expanded to include psychological assessments, individual career<br />
planning, and value modeling efforts, the notion of ‘‘development’’ can move<br />
beyond mere preparation for work to betterment of the person as a person.<br />
Psychological assessment, in particular, seems to be the focus of much<br />
attention. ‘‘Psychologist Robert Hogan has administered personality tests to<br />
well over a million people in the past three decades and claims that at least 55<br />
percent of managers in American corporations are unfit for their jobs,’’ writes<br />
Kaihla. ‘‘That may explain why his company, Hogan Assessment Systems, and<br />
many major test vendors are reporting double-digit growth this year over last.<br />
Business is booming for the headshrinkers.’’ 29<br />
Growing awareness exists, and is bolstered by thinking from the competency<br />
movement, that it is as much the person in the job as it is the work he<br />
or she is to do that is so important. That has prompted organizations to rely<br />
on a growing number of psychological assessments to help make or support<br />
employment decisions, including succession decisions. 30 The danger, of<br />
course, is that psychological assessments, or assessments like the Myers Briggs<br />
Type Indicator (MBTI), will be improperly used by poorly trained people—or<br />
will be used as the only reason to ‘‘rule people out’’ for promotions for which<br />
they may otherwise be well qualified. A good strategy is to look for instruments,<br />
like the Hogan (see www.hoganassessments.com/HPI.aspx) or the Neo<br />
(see www.rpp.on.ca/neopir.htm), that are based on the Big Five personality<br />
characteristics. Those assessments should be administered and interpreted<br />
only by people who know what they are doing. And HR practitioners should<br />
train managers how to use personality assessments in combination with other<br />
methods of assessment to examine an individual’s likelihood of success in a<br />
future position. For more information on personality assessment, check out<br />
such Web sites as www.acsu.buffalo.edu/stmeier/c6.html and www.erin<br />
.utoronto.ca/w3psyuli/PSY230/PSY230Notes07.htm.
202 A SSESSING THE P RESENT AND THE F UTURE<br />
This section was meant to stimulate some thought. What could be done to<br />
move beyond talent pooling to achieve quantum leaps in improvement? I have<br />
offered several ideas. Perhaps you have some as well.<br />
Summary<br />
This chapter has emphasized present conditions. More specifically, it addressed<br />
the following questions:<br />
▲ What are the organization’s key positions?<br />
▲ What are the work requirements or competencies required in key positions?<br />
▲ How should individual performance be appraised?<br />
▲ What methods should be used to keep track of the organization’s work<br />
requirements and individual performance?<br />
The next chapter focuses on anticipating future conditions as essential in succession<br />
planning and management. It thus discusses how to identify future<br />
work requirements in key positions and how to assess individual potential.
C H A P T E R 9<br />
ASSESSING FUTURE WORK<br />
REQUIREMENTS AND<br />
INDIVIDUAL POTENTIAL<br />
Having information about present work requirements or competencies and<br />
individual job performance provides only a one-dimensional picture. To make<br />
the picture complete—and thus provide the basis for systematic succession<br />
planning and management (SP&M)—information is also needed about future<br />
work requirements and individual potential. 1 Hence, this chapter focuses on<br />
assessing future work requirements and individual potential. More specifically,<br />
the chapter addresses these questions:<br />
▲ What key positions and talent requirements are likely to emerge in the<br />
organization’s future?<br />
▲ What will be the work requirements in those positions?<br />
▲ What is individual potential, and how should it be assessed?<br />
Identifying Key Positions and Talent Requirements for the<br />
Future<br />
Neither key positions nor their work requirements will remain forever static.<br />
The reason, of course, is that organizations are constantly in flux in response<br />
to pressures exerted internally and externally. As a result, SP&M coordinators<br />
need to identify future key positions and determine future work requirements<br />
if they are to be successful in preparing individuals to assume key positions.<br />
They must, in a sense, cope with a moving-target effect in which work requirements,<br />
key positions, and even high-potential employees are changing. 2<br />
But how can they be certain what positions will be key to the organization<br />
in the future? Unfortunately, the unsettling fact is that no foolproof way exists<br />
to predict key positions. About the best that can be done is to conduct careful<br />
reviews of changes in work and people, and draw some conclusions about the<br />
likely consequences of change.<br />
203
204 A SSESSING THE P RESENT AND THE F UTURE<br />
Applying Environmental Scanning<br />
As a first step in predicting key positions in the future, begin by applying environmental<br />
scanning. This can be understood as a systematic process of examining<br />
external trends. 3 Focus attention on economic, governmental/legal,<br />
technological, social, geographical, and other issues and trends affecting the<br />
organization’s external environment. (Use the worksheet in Exhibit 9-1 for this<br />
purpose.) For best results, involve decision-makers in this process, since key<br />
positions in the future should reflect the organization’s strategic plans and<br />
changing work processes.<br />
Applying Organizational Analysis<br />
As a second step in predicting key positions in the future, turn next to organizational<br />
analysis. This is the systematic process of examining how an organization<br />
is positioning itself to address future challenges. 4 It can also be<br />
understood as any effort made to assess an organization’s strengths and weaknesses.<br />
Consider the following questions:<br />
▲ How well positioned is the organization presently to respond to the<br />
effects of future trends?<br />
▲ What action steps can the organization take to meet the threats and<br />
opportunities posed by future trends?<br />
▲ How can the organization maximize its strengths and minimize its weaknesses<br />
as the future unfolds in the present?<br />
As these questions are answered, pay particular attention to likely changes in<br />
(1) organizational structure (What will be the reporting relationships? How<br />
will divisions, departments, work units, and jobs be designed?), and (2) work<br />
processes (How will work flow into each part of the organization? What will be<br />
done with it? Where will the work flow to?).<br />
Structure and processes are important issues because key positions result<br />
from decisions made about how to structure responsibility and organize the<br />
work process. 5 To direct attention to likely key positions in the future, then,<br />
decision-makers should examine how the organization will respond to external<br />
pressures by structuring responsibility and organizing work processes. Key<br />
positions will emerge—and old ones will fade—based on the way the organization<br />
chooses to respond to environmental demands. Use the activity appearing<br />
in Exhibit 9-2 to help decision-makers address these issues.<br />
Preparing Realistic Future Scenarios<br />
As a third and final step in predicting key positions in the future, compare<br />
the results obtained from environmental scanning and organizational analysis.
Assessing Future Work Requirements and Individual Potential<br />
205<br />
Exhibit 9-1. A Worksheet for Environmental Scanning<br />
Directions: What trends evident in the external environment will affect the organization<br />
in the future? Answering that question should prove valuable in strategic business<br />
planning, human resource planning, and succession planning. Environmental<br />
scanning attempts to identify those trends—and, more important, to predict their<br />
effects.<br />
Use this simple worksheet to structure your thinking about trends that will affect your<br />
organization in the future and what their effects are likely to be. Answer each question<br />
appearing in the worksheet below. Then compare your responses to what other<br />
decision-makers in the organization have written.<br />
1. What trends outside the organization are most likely to affect it in the next 1–5<br />
years? Consider economic conditions, market conditions, financial conditions,<br />
regulatory/legal conditions, technological conditions, social conditions, and<br />
other trends that might uniquely affect the organization.<br />
List of trends likely to affect the organization:<br />
2. For each trend you listed in response to question 1 above, indicate how you<br />
think that trend will affect the organization. Describe the trend’s possible consequence(s),<br />
outcome(s), or result(s). (While you may not be able to do that with<br />
complete certainty, try to gaze into the crystal ball and predict what will happen<br />
as a result of a trend.)<br />
List effects/consequences:
206 A SSESSING THE P RESENT AND THE F UTURE<br />
Exhibit 9-2. An Activity on Organizational Analysis<br />
Directions: How will your organization respond to the trends evident in the external<br />
environment that will likely affect it in the future? Use this worksheet to help you<br />
structure your thinking about how external environmental trends will affect work in<br />
the organization.<br />
Obtain answers to the activity appearing in Exhibit 9-1. Then answer each question<br />
appearing in the worksheet below. Finally, compare your responses to what other<br />
decision-makers write. Use the responses to consider future work requirements in<br />
the organization.<br />
1. For each consequence, outcome, or result you listed in response to question 2<br />
in Exhibit 9-1, indicate what functions/positions in the organization are most<br />
likely to be affected and how you think those functions/positions will be—or<br />
should be—affected.<br />
List each consequence, outcome,<br />
or result.<br />
Describe what functions/positions are<br />
most likely to be affected and how you<br />
think they will be—or should be—<br />
affected.<br />
2. How should the organization respond to future trends? Should workflow<br />
change? Should work methods change? Should the organization’s structure<br />
change? Are any changes likely as a response to increasing external competitive<br />
pressure? How does the organization’s strategic plan indicate that those challenges<br />
will be met? Will new key positions emerge as a result of changes to<br />
organizational strategy? Will old key positions fade in importance while new<br />
ones become more important? Will new competencies be required, and (if so)<br />
what are they and where will they need to be demonstrated?<br />
Provide your thoughts:
Assessing Future Work Requirements and Individual Potential<br />
207<br />
Draw an organization chart as decision-makers believe it should appear in the<br />
future. Write the expected future mission of each organizational function on<br />
the chart. (Make several versions of that chart at different future time intervals—at,<br />
say, one year, three years, five years, and ten years into the future.)<br />
Then add the names of possible leaders and their successors.<br />
This process is called preparing realistic future scenarios. It is based on<br />
the process of scenario analysis, which has been widely applied to futures<br />
research and strategic planning. 6 Use the activity appearing in Exhibit 9-3 to<br />
help decision-makers structure their thinking in preparing realistic scenarios<br />
to identify future key positions. While not foolproof or failsafe, this approach<br />
is one way to move beyond traditional thinking about SP&M to ‘‘lead’’ the<br />
target—what hunters do when they shoot ahead of a moving target.<br />
Three Approaches to Determining Future Work Requirements in Key<br />
Positions<br />
Determining future work requirements means predicting possible or probable<br />
work activities, duties, and responsibilities in future key positions. Once likely<br />
future key positions have been identified, direct attention to predicting work<br />
or competency requirements for those positions. Move beyond present- or pastoriented<br />
descriptions to assess future work or competency requirements in key<br />
positions. To that end, apply one or more of the three approaches described<br />
below.<br />
1. Future-Oriented Job and Task Analysis<br />
To conduct future-oriented job and task analysis for key positions, focus attention<br />
on summarizing expected future activities, responsibilities, duties, or essential<br />
functions. 7 Extend the analysis by examining future tasks linked to<br />
those activities, responsibilities, duties, or essential job functions. Write position<br />
descriptions as they should exist at a future time if the organization is to<br />
be successful in meeting the competitive challenges it faces. In this way, the<br />
effects of organizational strategic plans on key positions can be mirrored, and<br />
thereby aligned, in position descriptions and task inventories. By comparing<br />
present and future position descriptions, decision-makers should be able to<br />
uncover important disparities—and, accordingly, information about desirable<br />
developmental opportunities to groom individuals for advancement. Use the<br />
activity appearing in Exhibit 9-4 to prepare future-oriented key position descriptions.<br />
However, future-oriented position descriptions are no panacea. They are<br />
prone to the same disadvantages as traditional (present-oriented) position descriptions:<br />
(1) a focus on activities, not results; (2) a lack of details about all<br />
elements essential to job success, including personal characteristics and attitudes;<br />
and (3) a requirement for continual, and time-consuming, revision because<br />
they date so rapidly. Additionally, they may be based on inaccurate (or
208 A SSESSING THE P RESENT AND THE F UTURE<br />
Exhibit 9-3. An Activity for Preparing Realistic Scenarios to Identify Future<br />
Key Positions<br />
Directions: The future can seem difficult to envision if predictions about it are left<br />
vague. Use this activity to make predictions more tangible. Using responses to questions<br />
appearing in Exhibits 9-1 and 9-2, create a detailed description of the likely<br />
future situation of your organization at the end of 5 years from the present. Do<br />
that by answering the questions appearing below. When you finish answering the<br />
questions, compare what you wrote to what other key decision-makers/strategists<br />
have written. Develop an overall scenario that describes the ‘‘best-guess situation’’<br />
of the way the future will appear for the organization.<br />
1. What is your ‘‘best guess’’ of how the organization will be functioning in 1 to 5<br />
years, based on environmental scanning or organizational diagnosis? Describe<br />
the organization’s situation, competition, profitability, and structure:<br />
2. What positions do you believe will be key (that is, critically important) in 1 to 5<br />
years? List their job titles below. What competencies will incumbents in those<br />
positions need to possess/demonstrate to be successful?<br />
simply wrongheaded) assumptions about the future. However, such disadvantages<br />
may be outweighed by their specificity and by helping individuals to<br />
envision the future into which they—and their organizations—are headed.<br />
2. Future Competency Models<br />
Competency modeling lends itself to a future orientation better than any other<br />
approach. 8 To give a future orientation to competency models, simply direct<br />
attention to the future rather than to the present or past. Ask the organization’s<br />
strategists to review each key position for underlying employee characteristics<br />
(including motives, traits, skills, self-image, social roles, or bodies of<br />
knowledge), which should, if assumptions about the future prove correct, simultaneously<br />
result in superior performance and actions consistent with orga-
Assessing Future Work Requirements and Individual Potential<br />
209<br />
Exhibit 9-4. An Activity for Preparing Future-Oriented Key Position<br />
Descriptions<br />
Directions: An organization’s strategic plans can seem vague to employees—and<br />
even to strategists—until they are made job-specific. Use this activity to help clarify<br />
how key positions should change to help the organization realize strategic goals<br />
and implement strategic business plans.<br />
In the left column below, list current job activities for each key position. Then, using<br />
the results of Exhibits 9-1, 9-2, and 9-3, list how those job activities should change<br />
between the present and 1 to 5 years in the future for the job incumbent to function<br />
in line with expected environmental trends and organizational changes made to<br />
cope with them.<br />
Ask each key job incumbent to complete this activity for his/her position. Then ask<br />
strategists to review the results of the activity for each key position in the organization<br />
and identify the competencies needed. Use the results as a basis for future-oriented<br />
succession planning.<br />
Current Job Activities for<br />
Each Key Position<br />
How Should These Activities Be<br />
Carried Out in 1–5 Years, and What<br />
Competencies Should Job Incumbents<br />
Possess/Demonstrate?<br />
nizational strategy. Apply competency modeling approaches with an emphasis<br />
on future, rather than past or present, competencies. Then use the resulting<br />
competency models as a guide to prepare individuals for advancement into<br />
key positions.<br />
Alas, however, future competencies may not be identical to present or past<br />
competencies. Indeed, they may even conflict with them. For instance, think<br />
about such examples as IBM after downsizing or AT&T after deregulation. In<br />
each case, what was required for future success was not what had been historically<br />
required—or even desired—by the organization. That created a dilemma.
210 A SSESSING THE P RESENT AND THE F UTURE<br />
Managers who succeeded under the old conditions were suddenly outmoded<br />
and were even unfit to counsel a new generation about what it would take for<br />
them to succeed. In these settings, managers had to identify—and cultivate—<br />
talent that was quite different from their own if their organizations were to<br />
survive. Exemplary future competence, then, represents a moving target, an<br />
ideal, a description of what people will probably have to know, do, or feel to<br />
perform successfully amid the vague uncertainties of the future. 9<br />
Future-oriented competency models, like future-oriented position descriptions,<br />
suffer from the same strengths and weaknesses as their traditional counterparts.<br />
While more rigorous than job analysis, a competency model can be<br />
confusing to those who do not clearly understand what it is. Additionally,<br />
future-oriented competency models usually require considerable time and expertise<br />
to carry out successfully. That may require strategists to devote significant<br />
time and resources to it, which they may be reluctant to do.<br />
3. Future-Oriented Rapid Results Assessment<br />
This approach to competency identification has very real potential to help<br />
decision-makers plan for future work requirements in key positions. Nor does<br />
it require substantial expertise, time, or resources to carry out. To use it, simply<br />
focus attention on desirable future competencies. Apply the steps depicted<br />
in Exhibit 9-5. Then use those steps to examine competencies in each key<br />
position in the organization. Use the results as the basis to plan for individual<br />
development and organizational SP&M generally. 10<br />
Rapid results assessment enjoys important advantages: It can be conducted<br />
quickly; it enjoys high face validity because it uses experienced and exemplary<br />
job incumbents (or other knowledgeable people) on which to base positionspecific<br />
information; it permits the personal involvement of key decisionmakers,<br />
thereby building their ownership in the results; and it can be used to<br />
move beyond a focus on mere work activities or tasks to include descriptions<br />
of underlying characteristics or work outputs. However, it shares the disadvantages<br />
of its traditional counterpart: The results are not as rigorous nor as complete<br />
as other competency modeling methods, and the results are heavily<br />
dependent on the credibility of the individual panelists. Additionally, as in<br />
other future-oriented approaches, it is only as good as the assumptions about<br />
the future on which it is based.<br />
Assessing Individual Potential: The Traditional Approach<br />
The centerpiece of most SP&M programs is some means by which to assess<br />
individual potential. This effort seeks to determine how to make best use of<br />
the organization’s existing human resource assets. However, assessing future<br />
potential should not be confused with appraising present job performance.<br />
Performance appraisal is linked to present job performance; potential assessment<br />
is linked to future advancement possibilities. Potential assessment is a<br />
critically important activity, if only because as many as one-third of all leader-
Assessing Future Work Requirements and Individual Potential<br />
211<br />
Exhibit 9-5. Steps in Conducting Future-Oriented ‘‘Rapid<br />
Results Assessment’’<br />
Step 1 Assemble a group of 5–13 knowledgeable<br />
Orient the committee to<br />
individuals—including exemplary job incumthe<br />
rapid results assess-<br />
bents and their immediate exemplary superiors.<br />
<br />
ment procedure.<br />
Brief group members on the need to predict<br />
changing work requirements.<br />
Step 2 Assemble information about one or more<br />
Review current information specific key jobs/positions in the organizaabout<br />
the job/occupation/ tion.<br />
<br />
function.<br />
Focus attention in this step on ‘‘what job in-<br />
cumbents do now.’’<br />
Step 3 Brief group members on trends in the external<br />
Review external environchange—or<br />
require change—in job duties,<br />
environment and the organization that may<br />
mental factors affecting<br />
the organization and likely activities, responsibilities, tasks, competen-<br />
ways the organization will cies, or essential job functions.<br />
respond to them.<br />
Step 4 Ask group members to identify how they believe<br />
key positions will be affected by chang-<br />
Identify specific activities<br />
that are likely to be carried ing external environmental conditions.<br />
<br />
out in the key position in<br />
Go around the meeting room and ask each<br />
the future.<br />
group member to list an activity that he or she<br />
envisions will be carried out in the future—<br />
and continue this process until group members<br />
exhaust ideas.<br />
Step 5 Ask group members to review the activities<br />
Review and refine the<br />
they defined in the previous step, eliminating<br />
future-oriented task and<br />
redundancy and identifying names for gen-<br />
activity statements.<br />
eral categories.<br />
Step 6 Ask group members to sequence the futureoriented<br />
task and activity statements they<br />
Sequence future-oriented<br />
task and activity statearranged<br />
from easiest to most difficult to<br />
identified in the previous step so that they are<br />
ments.<br />
learn.<br />
(continues)
212 A SSESSING THE P RESENT AND THE F UTURE<br />
Exhibit 9-5. (continued)<br />
Step 7 Develop a ‘‘matrix’’ on a sheet of paper that<br />
Construct a ‘‘futureganized<br />
by category and arranged from easi-<br />
depicts future-oriented tasks and activities ororiented<br />
task and activity’’<br />
matrix.<br />
est to most difficult to learn.<br />
Step 8 Review each task/activity on the matrix and<br />
Examine the appropriate<br />
ask group members to identify appropriate<br />
‘‘affective domain’’ isthat<br />
are properly associated with each task/<br />
competencies/feelings/value orientations<br />
sues for each futureactivity.<br />
oriented task and activity<br />
statement.<br />
Step 9 Review each task/activity on the matrix and<br />
Examine appropriate perways<br />
to measure/assess/appraise perform-<br />
ask group members to identify appropriate<br />
formance standards for<br />
each future-oriented task ance relative to the future-oriented task or ac-<br />
and activity statement on tivity.<br />
the matrix.<br />
Step 10 Use the results of the rapid results assessment<br />
Establish procedures by<br />
to position succession planning on a futurewhich<br />
to use the matrix for oriented, rather than present- or past-<br />
selecting, appraising, assessing<br />
potential, and<br />
oriented, footing.<br />
other important activities.<br />
ship positions (it has been estimated) would not be filled by present incumbents<br />
if decision-makers had it to do over again. 11<br />
What Is Individual Potential Assessment?<br />
Individual potential assessment is a systematic process of examining individuals’<br />
possibilities for job change or movement. It is usually associated with determining<br />
whether individuals ‘‘have what it takes’’ to advance to positions of<br />
greater management responsibility or positions demanding greater technical<br />
knowledge. It should be linked to—and serve as one basis for determining—<br />
employee training, education, and development activities, which (collectively)
Assessing Future Work Requirements and Individual Potential<br />
213<br />
represent a vehicle to help an individual qualify for advancement. 12 It should<br />
also be linked to individual career planning activities, which have (unfortunately)<br />
been deemphasized in recent years owing to widespread downsizing<br />
and economic restructuring.<br />
What Is a High Potential?<br />
The term high potential has more than one possible meaning. High potentials,<br />
who should be identified through the individual potential assessment process,<br />
represent the organization’s inventory of future leaders. They are usually individuals<br />
who are capable of advancing two or more levels beyond their present<br />
placement, individuals who are slated for key positions, or those who have not<br />
reached a career plateau. (Other definitions are also possible. 13 ) It is important<br />
to define the term in a way unique to each organization. In fact, each organization<br />
may have several definitions.<br />
Distinguishing Between Exemplary Performers and High Potentials<br />
Individuals who are high potentials are almost always exemplary performers<br />
who are identified through the performance appraisal process and who exceed<br />
minimum job expectations. Exceptional performance in the current job is usually<br />
a necessary prerequisite to advancement. 14 However, not all exemplary<br />
performers are high potentials because advancement potential is based on<br />
different criteria from present performance.<br />
In any organization or organizational unit, individuals may be classified<br />
into four distinct groups based on their performance and their potential. To<br />
that end, think of a grid with two axes. 15 (See Exhibit 9-6.) One axis represents<br />
present performance and is divided between high and low performance; the<br />
second axis represents future potential and is divided between high and low<br />
potential. The result is a performance/potential grid that closely resembles the<br />
Boston Consulting Group’s widely used portfolio analysis technique for use in<br />
strategic planning. It is also a method for making investments decisions.<br />
As shown in Exhibit 9-6, stars (see the upper left cell of the performance/<br />
potential grid) are exemplary individual performers in their present positions.<br />
They are also perceived to have high potential for future advancement. 16 A<br />
major corporate asset, they are properly regarded as high potentials and are a<br />
source of replacements for key positions. An effective HR strategy for stars<br />
involves a twofold effort to make the most of their current performance while<br />
systematically preparing them for advancement—and even accelerating their<br />
development, if possible. Above all, the organization should make every effort<br />
to seek to recruit and retain them, keeping their turnover minimal.<br />
Workhorses (see the upper right cell of the performance/potential grid) are<br />
exemplary performers in their current jobs who are perceived to have poor
214 A SSESSING THE P RESENT AND THE F UTURE<br />
Exhibit 9-6. How to Classify Individuals by Performance and Potential<br />
The Performance/Potential Grid<br />
Future Potential<br />
High<br />
Low<br />
Present<br />
Performance<br />
High Stars Workhorses<br />
HR strategy:<br />
Keep turnover low. Keep turnover low.<br />
Take steps to acceler- Keep them motivated<br />
ate their development. and productive where<br />
they are.<br />
Low Question Marks Deadwood<br />
HR strategy:<br />
Convert them to stars. Convert them to work-<br />
Counsel them to ac- horses.<br />
celerate their develop- Terminate them if they<br />
ment.<br />
cannot be salvaged.<br />
Source: George S. Odiorne, Strategic Management of Human Resources: A Portfolio Approach (San Francisco: Jossey-Bass,<br />
1984), p. 305. Adapted with permission of the publisher.<br />
future potential. 17 Since they are highly productive where they are, they should<br />
remain there. An effective strategy for workhorses is to harness their skills<br />
while keeping them motivated and productive. Turnover in their ranks, as with<br />
stars, should be kept minimal.<br />
Question marks (see the lower left cell of the performance/potential grid)<br />
are poor performers in their present positions who are perceived to have high<br />
future potential. 18 The best HR strategy for dealing with them is to focus on<br />
improving their present performance, thereby turning them into stars. Their<br />
immediate supervisors should be trained to apply appropriate techniques—<br />
such as coaching, mentoring, and (when warranted) corrective action steps—to<br />
make them more productive.<br />
Finally, deadwood (see the lower right cell of the performance/potential<br />
grid) consists of individuals who are neither good performers in their present<br />
jobs nor perceived to have future advancement potential. 19 While their ranks<br />
may have been dramatically reduced in the 1990s owing to downsizing and<br />
other reductions in force, their ranks may be swollen in some international<br />
subsidiaries where the national culture emphasizes good relationships between<br />
bosses and subordinates rather than performance (results).<br />
A twofold HR strategy is most effective with deadwood. First, their immediate<br />
organizational superiors should make every effort to help them improve
Assessing Future Work Requirements and Individual Potential<br />
215<br />
their present performance. If successful, that strategy will convert deadwood<br />
to workhorses. If unsuccessful, that strategy should be followed up by fair and<br />
even-handed efforts, consistent with the organization’s disciplinary policies<br />
and practices, to move them out of the job—or even out of the organization.<br />
Identifying High Potentials<br />
How can the organization identify high potentials? There are several ways to<br />
answer that question because approaches to assessing individual potential are<br />
as diverse as employee performance appraisal, and sometimes resemble each<br />
other.<br />
Global Assessment<br />
One way to assess potential is to ask senior executives to furnish the names of<br />
individuals in their areas of responsibility who they feel have high potential<br />
according to the definition established in the organization. This is called global<br />
assessment. (See Exhibit 9-7 for a sample worksheet to be used in making<br />
global assessments.)<br />
It is a simple approach, but it is not very effective, for several reasons. First,<br />
few senior executives (except those in very small organizations) will know<br />
everyone in their areas of responsibility. Second, unless the definition of ‘‘high<br />
potential’’ is made quite clear, senior executives are likely to respond to a<br />
request for names based on their perceptions. Those perceptions about individuals<br />
can be colored too much by recent events (recency bias), extremely<br />
bad incidents (the horn effect), or extremely good incidents (the halo effect).<br />
Indeed, perceptions can lead to personal favoritism, discrimination, or pigeonholing<br />
in which individual potential is difficult to change once assessed.<br />
Success Factor Analysis<br />
A second approach to individual potential assessment is based on success factor<br />
analysis, the process of examining traits or other characteristics perceived<br />
to lead to organizational success or advancement. One research study, for instance,<br />
revealed that successful women share such characteristics as exemplary<br />
educational credentials, a track record of hard work and good performance,<br />
supportive mentoring relationships, effective interpersonal skills, and a willingness<br />
to take career and work risks. 20<br />
Success factors may be identified through various means. One way is to ask<br />
executives what traits they think will lead to success in the organization. These<br />
traits may then be collected in the way depicted in Exhibit 9-8. Executives can<br />
be asked to check off what they believe those traits are. Lists completed by<br />
numerous executives may be compiled and used as the basis for developing
216 A SSESSING THE P RESENT AND THE F UTURE<br />
Exhibit 9-7. A Worksheet for Making Global Assessments<br />
Directions: Use this worksheet to list individuals whom you consider to be ‘‘highpotentials’’<br />
in your organizational area of responsibility. A ‘‘high-potential’’ is an<br />
individual who has the capacity to be promoted two or more levels. List the names<br />
below, provide their present titles, and the time they have spent in the present positions.<br />
Be prepared to discuss, in the future, why you believe these individuals have<br />
the capacity to be promoted two or more levels. If possible, rank them by their<br />
potential—with 1 highest potential. (Do not use current position as a basis for<br />
ranking; rather, use your judgment about individual ability to perform at a higher<br />
level.)<br />
Names Titles Time in Present Positions<br />
an individual potential assessment form, perhaps like the one shown in Exhibit<br />
9-9.<br />
An alternative is to conduct critical incident interviews with organizational<br />
strategists. This approach is based on critical incident analysis, which has been<br />
used in training needs assessment. Critical incidents were first identified for<br />
pilots during World War II. They were asked what situations (incidents), if<br />
ignored, might lead to serious (critical) consequences.<br />
If this approach is used, individual interviews should be conducted with<br />
strategists with a structured interview guide like the one shown in Exhibit 9-8.<br />
The results should then be analyzed and become the basis for establishing<br />
success factors. These, in turn, can be used in assessing individual potential<br />
and, when appropriate, identifying developmental opportunities.<br />
Three Approaches to Individual Potential Assessment<br />
There are three basic approaches to assessing individual potential. Each is<br />
based on a different philosophy. They are worth reviewing.
Assessing Future Work Requirements and Individual Potential<br />
217<br />
Exhibit 9-8. A Worksheet to Identify Success Factors<br />
Directions: Use this worksheet to identify success factors. A ‘‘success factor’’ is a<br />
past experience or personal characteristic linked to, and correlated with, successful<br />
advancement in the organization. Identify success factors by asking individuals who<br />
have already achieved success—such as key position incumbents—about their most<br />
important developmental experiences and about what they did (or skills they demonstrated)<br />
in the midst of those experiences.<br />
Pose the following questions to key position incumbents. Then compile and compare<br />
the results. Ask other key position incumbents in the organization to review the results.<br />
1. What is the single most difficult experience you encountered in your career?<br />
(Describe the situation below.)<br />
2. What did you do in the experience you described in response to question 1?<br />
(Describe, as precisely as you can, what actions you took—and what results you<br />
achieved as a result.)<br />
3. Reflect on your answer to question 2. What personal characteristics do you feel<br />
you exhibited or demonstrated in the action(s) you took? How do you feel they<br />
contributed to your present success?<br />
Leader-Driven Individual Potential Assessment<br />
The first approach might be called leader-driven. It is the traditional approach<br />
that was probably first used in business. Individual potential is assessed by the<br />
organization’s strategists—and often solely by key position incumbents for<br />
their own subordinates in their immediate areas of responsibility.<br />
The process may be a formal one, in which the organization has established<br />
forms for this purpose that are completed periodically on all employees<br />
or on a select group of employees (such as those designated as high potentials).<br />
Alternatively, the process may be informal: Each function or organiza-
218 A SSESSING THE P RESENT AND THE F UTURE<br />
Exhibit 9-9. An Individual Potential Assessment Form<br />
Directions: Individual potential may be assessed through many different approaches.<br />
One approach is to ask their immediate organizational superiors to rate<br />
employees—particularly those felt to be high-potentials—against various success<br />
factors, skills, competencies, values, or abilities that are felt to be correlated with<br />
future success at a higher level of responsibility.<br />
Ask key job incumbents to rate their subordinates on each of the following generic<br />
success factors. (It is better to use success factors specific to the unique organizational<br />
culture.) A separate form should be completed on each high-potential. The<br />
completed forms may then be used as one source of information about individual<br />
strengths/weaknesses.<br />
Ask the raters to place an x in the appropriate spot in the right column below the<br />
scale and opposite the success factor listed in the left column. Then ask raters to<br />
send their completed forms to the HR Department or to the organization’s Succession<br />
Planning Coordinator. There are no ‘‘right’’ or ‘‘wrong’’ answers in any absolute<br />
sense. However, raters may vary in their potential assessments, depending on how<br />
they interpret the success factors and the rating scale.<br />
Success Factors<br />
Scale<br />
(or competencies Needs Exceeds<br />
needed at a Improvement Adequate Requirements<br />
targeted level) 1 2 3 4 5 6 7 8 9<br />
Appraising<br />
Budgeting<br />
Communicating<br />
Controlling<br />
Dealing with Change<br />
Developing Employees<br />
Influencing Others<br />
Making Changes<br />
Making Decisions<br />
Managing Projects<br />
Effectively<br />
Organizing<br />
Planning<br />
Representing the<br />
Organization<br />
Effectively<br />
Staffing the Unit/<br />
Department
Assessing Future Work Requirements and Individual Potential<br />
219<br />
tional unit is asked to submit names of individuals who have advancement<br />
potential.<br />
This approach is characterized by secrecy. Employees have little or no say<br />
in the process; indeed, they are not always aware that it is being carried out.<br />
No effort is made to double-check individual potential assessment results with<br />
individual career aspirations or plans to ensure that an appropriate match exists.<br />
An advantage of this approach is that it can be done quickly. Leaders<br />
simply fill out forms and return them to the human resources department, the<br />
SP&M coordinator, or a designated executive. Employees do not challenge the<br />
results because they are unaware of what they are. The organization thus retains<br />
strong control over SP&M and its results.<br />
A disadvantage of this approach, however, is that employees have no stake<br />
in outcomes they did not help to shape. If the results are ever used in making<br />
succession decisions, employees may refuse promotions or transfers that conflict<br />
with their perceptions of their own desired work-life balance or their own<br />
career goals.<br />
Participative Individual Potential Assessment<br />
A second approach might be called participative assessment. Both individuals<br />
and their immediate organizational superiors enact important roles in the assessment<br />
process. Hence, it is participative. Periodically—such as once a<br />
year—employees undergo an individual potential assessment. It may be timed<br />
at the halfway point of the annual performance appraisal cycle so that potential<br />
assessment is not confused with performance appraisal.<br />
Although there are many ways to carry out the process, one approach involves<br />
distributing individual assessment appraisal forms to employees and<br />
their immediate organizational superiors. Employees and superiors complete<br />
the forms, exchange them, and later meet to discuss the individual’s advancement<br />
capabilities. As with performance appraisals, the forms for individual<br />
potential assessment are usually prepared by the human resources department,<br />
distributed from that department, and the results returned to that department<br />
for filing in personnel records. (Alternatives to that approach are<br />
possible. For instance, completed individual assessment appraisal forms may<br />
be retained by the leader of each organizational unit.)<br />
An advantage of this approach is that it allows ‘‘reality testing.’’ Individuals<br />
learn of possibilities for the future, which may interest them and motivate<br />
them; organizational representatives learn more about individual career goals<br />
and aspirations, thereby improving the quality of their succession plans. In<br />
this way, the assessment process provides an opportunity for mutual candor<br />
and information-sharing.<br />
Key to this process is the individual potential assessment interview. It<br />
should be carried out in a quiet, supportive setting that is free of interruptions.<br />
The employee’s immediate organizational superior should set the pace, dis-
220 A SSESSING THE P RESENT AND THE F UTURE<br />
cussing his or her perceptions about the individual’s strengths and weaknesses<br />
for advancement—and the realistic possibilities for that advancement. Having<br />
an agenda can make an interview of this kind run smoothly. Another advantage<br />
is that employees have a stake in the assessment process. If the organization<br />
should have a need to make a succession decision, the likelihood is greater<br />
that employees will accept offers of promotions or transfers that match their<br />
career goals and organizational needs.<br />
A disadvantage of this approach is that it can rarely be done quickly. Leaders<br />
and employees must devote time to it if it is to be valuable. Indeed, to gain<br />
the full benefits from it, leaders must be trained on effective interviewing skills.<br />
Another disadvantage is that the value of participative assessment is a function<br />
of the interpersonal trust existing between leaders and their employees. However,<br />
trust is not always present, nor is complete candor.<br />
Several factors affect trust. Among them are past dealings between the organization<br />
and individual; the perceived candor of the organization’s representative;<br />
and the match between individual career goals and organizational<br />
opportunities. To cite two examples, suppose that an employee has personal<br />
aspirations that may eventually lead to her departure from the organization.<br />
She may be unwilling to share that information for fear of how it might affect<br />
her prospects for promotion. Likewise, leaders may be unable to share information<br />
about pending changes affecting the organization—such as the sale of<br />
a division or the dissolution of a product line—that may also impact career<br />
goals or succession plans.<br />
Empowered Individual Potential Assessment<br />
In this third approach, leaders provide guidance and direction but do not<br />
determine the outcomes or make final decisions affecting individual potential.<br />
Instead, they just share information and offer coaching suggestions. Individuals<br />
remain chiefly responsible for their own self-assessment and their own selfdevelopment.<br />
Once a year, employees are encouraged to complete individual potential<br />
assessment forms, share them with their immediate organizational superiors,<br />
and then schedule meetings to discuss them with their superiors. (Some may<br />
even decide to discuss their forms with their mentors.) The form is usually<br />
created and supplied by the human resources department. However, it may—or<br />
may not—be called an individual potential assessment form. Alternative names<br />
might include career planning assessment form or individual development<br />
planning form (see Exhibit 9-9). In this approach, the initiative rests entirely<br />
with employees. They conduct their own individual assessments; they schedule<br />
assessment meetings with their immediate organizational superiors or with<br />
mentors in other parts of the organization; they are not required to participate<br />
in the assessment process, which remains voluntary. As with other approaches,<br />
however, it is usually kept separate from performance appraisals so as not to
Assessing Future Work Requirements and Individual Potential<br />
221<br />
confuse present performance and future potential. Individual potential assessment<br />
becomes a tool to help individuals understand how to qualify for advancement<br />
within the framework of the organization’s needs and their own<br />
career goals.<br />
An advantage of this approach is that, like other empowerment efforts, it<br />
can be quite motivating to employees. Further, it discourages a philosophy of<br />
entitlement in which employees with a long service record feel that promotions<br />
are ‘‘owed’’ to them. Instead, the responsibility for advancement rests<br />
squarely on their shoulders, and they are expected to take an active role in<br />
setting their own career directions and finding the necessary resources to develop<br />
in line with those directions.<br />
Another advantage of this approach is that employees are not given the<br />
impression, which is possible with other approaches, that they are guaranteed<br />
advancement. Management should state the message, loud and clear, that ‘‘we<br />
can’t guarantee promotions, but we can guarantee that those who have taken<br />
the steps to obtain the necessary qualifications for a higher-level position will<br />
be given due consideration.’’<br />
However, the chief disadvantage of this approach is that the organization<br />
sacrifices control over employees. Indeed, it may not always be apparent<br />
whether replacements exist for each key position. It thus creates a talent pool<br />
rather than a position-oriented succession plan. In practical terms, this means<br />
that nobody may know at any time if even one person is ‘‘ready’’ to assume<br />
important positions in the organization.<br />
Empowered individual potential assessment is likely to remain important,<br />
a mainstream approach. One reason is that it matches current thinking about<br />
the need to decentralize decision making and give the control to those who<br />
deal with customers or consumers daily. A second reason is that this approach<br />
can unleash individual initiative rather than stifle it, thereby motivating people<br />
to want to qualify for advancement.<br />
The Growing Use of Assessment Centers and Portfolios<br />
Since the previous editions of this book appeared in print, the world has<br />
changed. Organizations are now using assessment centers and portfolios to<br />
assess individual potential. But what are they?<br />
Assessment Centers<br />
Assessment centers are back as a tool for potential assessment in succession<br />
management. 21 Of course, an assessment center is a process and should not<br />
be confused with a place. The idea is simple enough: create a realistic simulation<br />
of the work performed by those at targeted levels—for example, top man-
222 A SSESSING THE P RESENT AND THE F UTURE<br />
agement work—and then run individuals through the process to determine<br />
how well they perform in a higher-level (or targeted) position.<br />
Assessment centers went out of fashion for a time owing to the hard work<br />
and expense involved in setting them up. After all, they must be based on the<br />
actual work performed (rather than subjective impressions) or the competencies<br />
linked to successful performance. The individual’s progress in the assessment<br />
center is rated by trained assessors who must judge the performance of<br />
the individuals. There is still concern in some circles about the time and cost<br />
involved in establishing and maintaining assessment centers and concern<br />
about the possibility of not being able to defend against discrimination complaints.<br />
An alternative is to send individuals through outsourced assessment<br />
centers, established by universities or by consulting companies. Unfortunately,<br />
the latter approach means that individuals may be rated against some other<br />
organization’s competency models, which could be a formula for misidentifying<br />
the abilities of individuals.<br />
Ten classic errors have been identified in the use of assessment centers,<br />
and organizations that set out to use them should do their best to avoid these 22 :<br />
1. Poor Planning<br />
2. Inadequate Job Analysis<br />
3. Weakly Defined Dimensions<br />
4. Poor Exercises<br />
5. No Pretest Evaluations<br />
6. Unqualified Assessors<br />
7. Inadequate Assessor Training<br />
8. Inadequate Candidate Preparation<br />
9. Sloppy Behavior Documentation and Scoring<br />
10. Misuse of Results<br />
Of course, the value of this approach is that it is thus possible to see individuals<br />
in action before they are promoted. That is a significant advantage. Assessment<br />
centers also do a good job of identifying actual behaviors—that is, observable<br />
actions—that are far more valid and reliable than notoriously weak job interviews.<br />
Work Portfolios<br />
How does an employer assess an individual’s relative readiness for a higherlevel<br />
job? One way is to focus on behaviors, which are essentially observable<br />
demonstrations. Competencies can be manifested as behaviors. And, of course,<br />
full-circle, multirater (that is, 360-degree) assessment is one way to measure
Assessing Future Work Requirements and Individual Potential<br />
223<br />
behaviors because raters are usually asked how often or how well they have<br />
seen an individual demonstrate behaviors linked to competencies.<br />
Of course, an alternative to measuring behaviors is to focus on the outputs<br />
or outcomes of competencies. For instance, if examining the typing behavior<br />
of a secretary, a rater can focus on what he or she does while typing. But<br />
since that may be pointless, another way to measure the demonstration of<br />
competencies is through work samples. A work sample is literally an example<br />
of the work output. For a secretary, a work sample may be a typed letter or<br />
report. The rater can judge the quality of what the secretary produces.<br />
How does measuring outputs or outcomes relate to succession planning<br />
and management? The answer to that question should be apparent. If, for<br />
example, a supervisor being groomed for the job of manager would be expected<br />
to produce budgets as part of the manager’s job, then he or she could<br />
prepare a budget and present it as an example of his or her work. If the supervisor<br />
does not do budgeting in his or her present job, then that can become<br />
the focus of developmental activities on a competency like ‘‘budgeting skill.’’<br />
Carrying out that skill may be essential to qualify for promotion to manager,<br />
for instance.<br />
A work portfolio, sometimes called a dossier, began in the art world. Artists<br />
must convince gallery owners to show their work. Since gallery space and<br />
time are limited, gallery owners want to know what quality of work the artist<br />
produces. To address that concern, artists compile examples of their best<br />
works—such as watercolors, charcoal drawings, oil paintings, or photos of<br />
sculptures—to show the gallery owner. These are assembled in a portfolio that<br />
the artist can carry with him or her. The gallery owner then judges the quality<br />
of the work—presumably the best work that the artist has done—and decides<br />
whether the artist’s talents warrant an art show.<br />
The same idea can be applied to rating individuals’ abilities. They can be<br />
asked to assemble a portfolio that represents their best work—or, alternatively,<br />
represents the best work that they could prepare to show what they could do<br />
in a job they do not yet hold. For instance, a management consultant who is<br />
interviewing for an entry-level job might present examples of marketing materials<br />
he or she has prepared, proposals written, deliverables produced, and<br />
letters of testimony from satisfied clients. Similarly, a supervisor who is interviewing<br />
to become a department manager could provide examples of work<br />
outputs that are linked to essential requirements of the department manager’s<br />
job.<br />
To create a work portfolio, start with the competency model or with a job<br />
description and ask: what are the outcomes, tangible or intangible, of that<br />
competency or work activity? The portfolio can then be prepared with the<br />
resume at the front, a targeted job description or competency model, and then<br />
work samples representing the supervisor’s efforts to demonstrate the real<br />
work performed by department managers. Work portfolios may then be compared<br />
for quality and the person whose work portfolio is best may be invited<br />
to participate in additional steps of the selection process.
224 A SSESSING THE P RESENT AND THE F UTURE<br />
The value of work portfolios is that they go to work results. It is not a<br />
matter of impressing interviewers alone, though participating in interviews<br />
may still be essential to be selected. But work portfolios have the advantage of<br />
focusing attention on desired results. Of course, a disadvantage is that raters<br />
may not assess the same work in the same ways without training and/or agreedupon<br />
guidelines for rating that work. Additionally, job applicants must understand<br />
clearly what they are being asked to provide by way of work samples. If<br />
they are not, then what can happen may not be good. For example, ‘‘when<br />
Optum, Inc., a White Plains, N.Y., software company, asked applicants to submit<br />
work samples, ‘we got in personal poetry and song lyrics,’ says Kelly Vizzini,<br />
director of corporate marketing.’’ 23 One time when I asked for a writing<br />
sample from a job applicant, he used a dolly to wheel in eleven large three-ring<br />
binders full of material he had written. Unfortunately, when that happened, I<br />
was away from my desk, and he left before I could return. When I did return,<br />
I was amazed to see an enormous stack of material sitting on my desk, which<br />
I had no room to store.<br />
But the approach can also work well. Another time I conducted some supervisory<br />
training for a large organization. The Operations Manager wanted<br />
her thirty-five supervisors to take paper-and-pencil examinations. I dissuaded<br />
her of that and, instead, convinced her to have each supervisor assemble a<br />
notebook—a work portfolio—of his or her best work. That way, the Operations<br />
Manager could see for herself what level of work they performed, and<br />
that prompted much discussion as she reviewed what they regarded as good<br />
work samples. She was then able to use those work samples as a focal point<br />
for developing the supervisory group—and assess individuals for their potential<br />
for future advancement.<br />
Summary<br />
As this chapter has shown, information about future work requirements and<br />
individual potential is essential to an effective succession planning and management<br />
program. When paired with information about present work requirements<br />
and individual job performance, it becomes the basis for preparing<br />
individual development plans to narrow the gaps between what individuals<br />
already know and do and what they must know and do to qualify for advancement.
PART<br />
IV<br />
CLOSING THE ‘‘DEVELOPMENTAL GAP’’:<br />
OPERATING AND EVALUATING A SUCCESSION<br />
PLANNING AND MANAGEMENT PROGRAM<br />
Part I<br />
Background Information About<br />
Succession Planning and Management<br />
Part IV<br />
Closing the “Developmental Gap”:<br />
Operating and Evaluating a Succession<br />
Planning and Management Program<br />
Part II<br />
Laying the Foundation for a<br />
Succession Planning and<br />
Management Program<br />
Part III<br />
Assessing the Present and the Future<br />
•Testing bench strength<br />
•Formulating internal promotion policy<br />
•Preparing individual development plans (IDPs)<br />
•Developing successors internally<br />
•Assessing alternatives to SP&M, as necessary<br />
•Applying online and high-tech approaches to SP&M programs<br />
•Evaluating SP&M programs<br />
•Taking steps to address predictions about the possible future of<br />
SP&M programs
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C H A P T E R 1 0<br />
DEVELOPING INTERNAL<br />
SUCCESSORS<br />
For a succession planning and management (SP&M) program to be effective,<br />
the organization must have some means by which to replace key job incumbents<br />
as vacancies occur in their positions. Promotion from within is a timehonored<br />
and crucially important, albeit traditional, way to do that.<br />
But, to prepare individuals for promotion, the organization has an obligation<br />
to do more than merely identify present and future work requirements<br />
and performance. Some way must also be found to clarify—and systematically<br />
close—the developmental gap between what possible successors can already<br />
do and what they must do to qualify for advancement. Individual development<br />
planning is the process of clarifying that developmental gap; internal<br />
development uses planned training, education, development, and other<br />
means to close the gap and thereby meet succession needs.<br />
This chapter focuses on determining the organization’s collective succession<br />
needs, using promotion from within to meet those needs, clarifying individual<br />
developmental gaps, and closing those gaps systematically through<br />
planned training, education, and development. More specifically, then, this<br />
chapter addresses the following questions:<br />
▲ What is bench strength, and how can the leaders of an organization test<br />
bench strength?<br />
▲ Why is internal promotion so important for succession, and when is<br />
it—and when is it not—appropriate for meeting SP&M needs?<br />
▲ What is an individual development plan (IDP)? How should one be prepared,<br />
followed up, and evaluated?<br />
▲ What are some important methods of internal development, and when<br />
should they be used?<br />
Testing Bench Strength<br />
Once key positions and work requirements have been identified, the organization<br />
should test bench strength. That is important because it provides informa-<br />
227
228 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
tion about the organization’s collective succession needs. That information<br />
can, in turn, dramatize the importance of taking action to meet SP&M needs.<br />
What Is Bench Strength?<br />
Bench strength is the organization’s ability to fill vacancies from within. Testing<br />
bench strength means determining how well the organization is able to fill<br />
vacancies in key positions from within.<br />
Turnover saps bench strength. There are two kinds of turnover. Unavoidable<br />
turnover is outside the immediate control of the organization. It is the<br />
loss of personnel through death, disability, and retirement. It may also include<br />
turnover resulting from organizational action, such as layoff, early retirement,<br />
buyout, or other means. Although many line managers would like to include<br />
promotions and transfers from their areas in the definition of unavoidable<br />
turnover, most HR departments do not include internal movements in the<br />
definition of unavoidable turnover.<br />
On the other hand, avoidable turnover is initiated by employees. It is a<br />
loss resulting from resignation as individuals leave the organization, typically<br />
moving to positions in other organizations. Although turnover of any kind is<br />
costly because the organization must find and train replacements, avoidable<br />
turnover is worse because it could be avoided if the organization could find<br />
some way to retain the employees.<br />
Avoidable turnover from key positions—or the less of high potentials—can<br />
be particularly distressing because it creates unnecessary crises. (This is sometimes<br />
called critical turnover. 1 ) One aim of any SP&M program should thus<br />
be to find ways to reduce avoidable turnover among high potentials or key<br />
position incumbents—or at least find the means to keep it stable.<br />
Approaches to Testing Bench Strength<br />
To test an organization for bench strength, ask decision-makers how they<br />
would replace key positions in their areas of responsibility or ensure that work<br />
requirements will be met through other, more innovative, means. Use any of<br />
the means described below.<br />
By Replacement Charting<br />
Prepare an organization chart to show the range of possible replacements for<br />
each key position in a work area. (See Exhibits 10-1 and 10-2.) Note how many<br />
holes can be identified. A hole is a position in which no internal replacement<br />
can be identified. The lower the percentage of holes relative to key positions,<br />
the greater is the organization’s bench strength.
Developing Internal Successors<br />
229<br />
Exhibit 10-1. A Sample Replacement Chart Format: Typical Succession<br />
Planning and Management Inventory for the Organization<br />
Sample<br />
Position<br />
Potential Successor<br />
Potential Successor<br />
Potential Successor<br />
1<br />
2<br />
3<br />
1: Successor ready now to one year<br />
2: Successor ready in one to two years<br />
3: No successor identified in five-year<br />
time frame<br />
Area Director<br />
Department<br />
Vice President<br />
Staff<br />
Functional<br />
Vice President<br />
Functional<br />
Vice President<br />
Assistant<br />
Vice President<br />
Assistant<br />
Vice President<br />
Assistant<br />
Vice President<br />
Director<br />
Assistant<br />
Vice President<br />
Source: Norman H. Carter, ‘‘Guaranteeing Management’s Future through Succession Planning,’’ Journal of Information Systems<br />
Management (Summer 1986), 19. Used by permission of the Journal of Information Systems Management.<br />
By Questioning<br />
Ask senior executives who will replace key-position incumbents in their areas<br />
in the event of a vacancy. Note how many holes by function can be identified.<br />
Track the holes. The lower the percentage of holes to key positions, the greater<br />
is the organization’s bench strength.<br />
By Evidence<br />
Using the results of an analysis of personnel records over the last few years,<br />
find out which departures created the worst problems for the organization.<br />
Note the number of such problems relative to total departures (turnover). The<br />
higher the percentage, the weaker the bench strength.<br />
By Combination<br />
Use a combination of the methods identified above to assess bench strength.<br />
Note the percentage of holes. Feed that information back to decision-makers<br />
to dramatize the value and importance of the SP&M program.
230 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 10-2. Succession Planning and Management Inventory by Position<br />
Key<br />
Title<br />
Performance<br />
Name of Incumbent<br />
Age Service<br />
Time in<br />
Position<br />
Salary<br />
Readiness<br />
Potential<br />
Performance Rating<br />
Definition<br />
X New—in position less than three months. Not evaluated.<br />
1 Unsatisfactory results and performance.<br />
2 Marginal—does not meet requirements of position (with learning<br />
discounted). Attitude and/or initiative not acceptable.<br />
Remedial action indicated.<br />
3 Satisfactory—generally meets job requirements but room for improvement.<br />
If in a major learning phase, considerable room for improvement.<br />
4 Above average—surpasses overall job requirements but lacks strength in<br />
some areas.<br />
5 Superior—some elements of performance may rate as exceptional, but<br />
overall performance falls below an exceptional rating.<br />
6 Exceptional—general all-around excellence in quality/quantity of work,<br />
initiative, self-development, new ideas, and attitude. Rapid learner.<br />
Potential<br />
A Outstanding—can advance two levels above present position.<br />
B Considerable—can advance at least one level above present position<br />
and/or assume substantial added responsibility at present level.<br />
C Some—can assume added responsibilities at present level.<br />
D Limited—at or near capacity in present position.<br />
E Key capacity in current position—vital technical knowledge precludes<br />
movement.<br />
X New—in position less than three months. Not evaluated.<br />
Readiness<br />
R/O Qualified to move now.<br />
R1 Within one to two years.<br />
R2 Within two to four years.<br />
N/A Current level appropriate.<br />
Source: Norman H. Carter, ‘‘Guaranteeing Management’s Future through Succession Planning,’’ Journal of Information Systems<br />
Management (Summer 1986), 20. Used by permission of the Journal of Information Systems Management.
Developing Internal Successors<br />
231<br />
Managing Talent Shows<br />
Talent shows go by many names. Sometimes they are called monthly, quarterly,<br />
or annual succession planning and management meetings that focus on identifying<br />
available talent in the organization eligible for promotion, discussing<br />
special developmental assignments that should be given to individuals from<br />
various divisions, evaluating the size of the organization’s talent pool relative<br />
to expected needs, or discussing how well senior managers have been grooming<br />
talent in their divisions or departments. One outcome of a talent show—<br />
sometimes called a development meeting or even (jokingly) a ‘‘beauty<br />
pageant’’—is a verified list of high potentials and developmental assignments<br />
for them. Another, more subtle outcome of a talent show is that it provides a<br />
means by which to hold senior managers accountable for developing talent by<br />
encouraging them to discuss, either in public with their peers or in private<br />
with the CEO and the VP of HR, how well they are handling the development<br />
of talent in their divisions or departments.<br />
It is worth mentioning that talent shows are the typical culmination of an<br />
annual succession process. There are three phases.<br />
Phase I: Preparation<br />
Senior managers must prepare for their meeting. A major value-added that can<br />
be provided by the HR department is to hold meetings with each senior manager<br />
before the meeting with the CEO or their peers to discuss what they will<br />
say and how they will say it. The reason to do that is that managers have a<br />
tendency to focus on ‘‘what is wrong.’’ That management-by-exception philosophy,<br />
while possibly desirable in other areas of management by economizing<br />
the time spent, can be devastating to the reputations of successors. The point<br />
is that public meetings to discuss development with the CEO or with peers<br />
should focus on ‘‘what we are going to do and what we want the outcomes to<br />
be’’ rather than ‘‘what is wrong’’ with someone. HR professionals can work<br />
through the problems that lead up to various developmental actions. In that<br />
way, public meetings can focus on actions to be taken and the desired results—<br />
and not on what is ‘‘wrong’’ with someone.<br />
Phase II: The Meeting<br />
The meeting itself must be planned. An agenda needs to be assembled. Someone<br />
in HR is usually assigned that task. It may be the vice president of HR, or<br />
it may be a key report of the VP of HR. But the agenda should ensure that time<br />
is economically used.<br />
One key issue to work out in advance is what the purpose of the meeting<br />
is to be. Several purposes are possible. One type of meeting focuses on rating<br />
possible successors and verifying a talent pool. That may require time for<br />
open-air discussions. Another type of meeting focuses on discussing the prog-
232 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
ress made in developing talent by division. A third type of meeting focuses on<br />
high potentials and what developmental assignments should be recommended<br />
to leverage their talents, challenge them, and build their competencies<br />
for the future.<br />
It is particularly important to pay attention to the group process of any<br />
talent show. One reason is that the relative willingness of people to speak their<br />
minds honestly is quite important to making good decisions. It is not desirable<br />
to have one or a few people dominating these meetings. At the end of each<br />
meeting, a discussion should focus on such group process questions as ‘‘How<br />
well did we work together?’’ and ‘‘How could we work together more effectively<br />
in the future?’’<br />
Phase III: The Follow-Up<br />
One thing that is often forgotten—but that must not be forgotten—is followup<br />
to ensure that actions are taken as they have been agreed upon. Often it<br />
falls to HR professionals to follow up. That may require e-mails, phone calls,<br />
personal visits, and other contacts to ensure that agreed-upon actions are<br />
taken. One reason that is important is that lack of follow-through is a common<br />
problem in succession. A second reason is that decisions are pointless if they<br />
are not acted on. Someone must pay attention to that. It will not just take care<br />
of itself. (See Exhibit 10-3 for more information about talent shows.)<br />
Formulating Internal Promotion Policy<br />
The centerpiece of a systematic SP&M program is a written policy favoring<br />
internal promotion. Lacking such a policy, organizations may have difficulty<br />
keeping ambitious high potentials and exemplary performers who seek advancement.<br />
If they grow discouraged, they can contribute to a devastating<br />
increase in avoidable, and critical, turnover. It is thus essential for the organization<br />
to make all reasonable efforts to retain them. One way to do that is to<br />
place the organization ‘‘on the record’’ as favoring promotion from within.<br />
Not only does a promotion-from-within policy motivate employees by showing<br />
that their efforts can pay off through promotion, but promotion from within<br />
also saves the organization money in recruiting, selecting, and training newcomers.<br />
2<br />
Essential Components of an Internal Promotion Policy<br />
To be effective, an internal promotion policy should do the following:<br />
▲ Unequivocally state the organization’s commitment to promoting employees<br />
from within whenever possible and whenever they are qualified<br />
to meet the work requirements of new positions. (But it is best to cap<br />
promotions at 80 percent to avoid too much inbreeding.)
Developing Internal Successors<br />
233<br />
Exhibit 10-3. Talent Shows: What Happens?<br />
At Eli Lilly, the direct managers of high-potential individuals participate in intensive<br />
assessment discussions with other executives concerning the individual’s strengths,<br />
development needs, and career potential. The individual’s manager then provides<br />
her with the key points of feedback from the assessment discussion. Afterward, the<br />
individual works with the manager to develop a personal career plan that reflects<br />
her perceived career potential and also factors in her career interests and goals.<br />
The career plan is reviewed by the manager and individual and is updated when<br />
needed or, at a minimum, on an annual basis.<br />
The amount of time that executives in many companies are devoting to succession<br />
planning is a clear reflection of the increased priority placed on developing top<br />
talent. At Dow Chemical, the Human Resource Council—a small group that includes<br />
the CEO and a handful of his key staff members—spends five days each year<br />
off-site on succession planning: talking about candidates, reviewing development<br />
plans, and directing development assignments. At Corning, executives in each<br />
major unit spend one to four days per year in people reviews that extend down well<br />
below the managerial level. The involvement of senior executives is often expressed<br />
in very personal ways. In a number of companies, CEOs, such as former General<br />
Electric’s Jack Welch, review job assignments and compensation recommendations<br />
for several hundred managers.<br />
Source: John Beeson, ‘‘Succession Planning,’’ Across the Board 37:2 (2000), 39. Used by permission.<br />
▲ Define internal promotion.<br />
▲ Explain the business reasons for that policy.<br />
▲ Explain the legitimate conditions under which that policy can be waived<br />
and an external candidate can be selected.<br />
Since an internal promotion policy will (naturally) build employee expectations<br />
that most promotions will be made from within, decision-makers should<br />
anticipate challenges—legal and otherwise—to every promotion decision that<br />
is made. For that reason, the policy should be reviewed by HR professionals,<br />
operating managers, and legal professionals before it is implemented or<br />
widely communicated. In any case, reviewing the policy before adoption is<br />
more likely to build consistent understanding and ownership of it.<br />
When Are Internal Promotions Appropriate or Inappropriate?<br />
Internal promotion is appropriate to meet a vacancy in a key position when a<br />
qualified replacement from the organization is:<br />
▲ Ready to assume the duties of the key position by demonstrated mastery<br />
of at least 80 percent of the position requirements and progress
234 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
toward meeting or exceeding the remaining 20 percent of the position<br />
requirements.<br />
▲ Willing to accept the position, expressing a desire to do the work.<br />
▲ Able to accept the position by having his or her own replacement prepared<br />
in a reasonably short time span and by being ready to assume the<br />
duties of a key position.<br />
But promotion from within is not appropriate for meeting SP&M needs<br />
when any of these conditions cannot be met. Alternatives to internal promotions<br />
are thus appropriate when a qualified internal candidate cannot be found<br />
after a reasonable search, when possible candidates refuse to accept a position,<br />
or when possible candidates cannot be freed up from their present duties<br />
in a reasonable time.<br />
The Importance of Job Posting<br />
Job posting is an internal method of notifying and recruiting employees for<br />
new positions in the organization. To begin such a program, the organization<br />
should establish a policy that position opening notices will be posted in prominent<br />
locations, such as next to building entrances and exits, near cafeteria<br />
entrances, on bulletin boards, near restrooms, or online. A typical job posting<br />
notice contains information about the position that is open, such as its title,<br />
pay grade, organizational location, and desirable starting date. Employees<br />
from all areas of the organization are encouraged to apply, and selection decisions<br />
are typically made on the basis of the applicant who brings the best<br />
qualifications to the job. (In some organizations, however, seniority may be an<br />
overriding factor in making a selection decision. Additionally, posting may be<br />
restricted to include only some, but not all, job categories or functions in the<br />
organization.)<br />
In many cases, positions are posted internally while also advertised externally.<br />
In that way, both internal and external applicants are attracted. The organization<br />
can thus seek the most qualified applicant, whether or not that person<br />
is presently employed by the organization.<br />
The major benefit of job posting is that it gives individuals a say in their<br />
career directions. Further, it permits the organization to consider applicants<br />
from outside the immediate work area, from which successors for key positions<br />
may frequently be selected. 3 It also reduces the chance of employee<br />
hoarding, in which an employee’s manager blocks promotions or transfers of<br />
high-potential or exemplary performers so they will remain forever trapped,<br />
though very productive, in the manager’s work area. 4<br />
The major drawback to job posting has more to do with the management<br />
of such programs than with the posting concept itself. If employees are allowed<br />
to jump to new jobs merely to realize small wage increases, posting
Developing Internal Successors<br />
235<br />
can be costly and demoralizing, especially to those responsible for training<br />
‘‘mercenary job hoppers.’’ Hence, to be used effectively as a tool in SP&M, job<br />
posting should be done for all jobs. However, careful restrictions should be<br />
placed on the process to ensure that employees remain in their positions for<br />
a period sufficient to recoup training costs.<br />
Preparing Individual Development Plans<br />
Testing bench strength should clarify the organization’s collective SP&M<br />
needs. However, it does not indicate what individuals should do to qualify<br />
for advancement to key positions. That is the reason for preparing individual<br />
development plans.<br />
What Is an Individual Development Plan?<br />
An individual development plan (IDP) results from a comparison of individual<br />
strengths and weaknesses on the current job and individual potential for<br />
advancement to possible key positions in the future. Preparing an IDP is a<br />
process of planning activities that will narrow the gap between what individuals<br />
can already do and what they should do to meet future work or competency<br />
requirements in one or more key positions.<br />
An IDP is a hybrid of a learning contract, a performance contract, and a<br />
career-planning form. A learning contract is an agreement to learn. Contract<br />
learning has enjoyed a long and venerable history. 5 It is particularly well suited<br />
to participative, learning organizations that seek to balance individual career<br />
needs and interests with organizational strategy and work requirements. A<br />
performance contract is an agreement to achieve an identifiable, measurable<br />
level of performance. 6 Sometimes tied to performance appraisal, it is directed<br />
toward future performance improvement rather than past performance. Finally,<br />
a career-planning form is a tool for helping individuals identify their<br />
career goals and establish effective strategies for realizing them in the future.<br />
A career-planning form is typically linked to an organizational career planning<br />
program, which can reinforce and support SP&M.<br />
An IDP goes a step beyond performance appraisal for the individual’s present<br />
job and potential assessment of the individual’s capability for future advancement<br />
to other, often key, positions in the organization. It results in a<br />
detailed plan to furnish individuals with the necessary development they need<br />
to qualify for advancement into their next positions.<br />
Developing an IDP usually requires a systematic comparison of the individual’s<br />
present abilities (as indicated by competency requirements, work activities<br />
appearing on job descriptions, and current performance as measured by<br />
performance appraisals) and future capabilities (as revealed through individual<br />
potential assessment). The IDP should narrow the gap between them, pro-
236 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
viding a clear-cut plan by which to prepare the individual for future<br />
advancement.<br />
How Are Individual Development Plans Prepared?<br />
Preparing an IDP shares strong similarities to preparing a learning contract.<br />
Take ten key steps when preparing individual development plans. (Exhibit 10-<br />
4 depicts these steps in a simple model.)<br />
Step 1: Select Possible Key Positions for Which to Prepare the Individual<br />
Begin by targeting a family of key positions in the organization for the individual.<br />
In most cases, this should be done only after a significant dialog has taken<br />
place between the individual and an organizational representative. As Deegan<br />
notes, ‘‘it is important that the individual understand the illustrative nature of<br />
the position you select as the targeted one and focus not on that specific job<br />
but on the family of jobs represented by it. Otherwise there may be disappointment<br />
if that job is not offered even though a future offer might actually meet<br />
the person’s needs better as well as those of the firm.’’ 7 Of course, if it is<br />
anticipated that the individual will be prepared for a specific key position that<br />
will soon become vacant, then planning should be focused on that position<br />
after discussion with the individual.<br />
Step 2: Consider the Likely Time During Which the Individual Must Be Prepared<br />
Time affects what kind of—and how many—developmental activities can be<br />
carried out. When individuals are slated for rapid advancement, there is little<br />
or no time for preparation. Hence, those developmental activities that are selected<br />
should be absolutely critical to effective job performance. There is thus<br />
a need to prioritize developmental activities. That should be done, of course,<br />
even when time is ample. The key issue in this step, then, amounts to this:<br />
How much time is available for development?<br />
Step 3: Diagnose Learning Needs<br />
Exactly what is the difference between the individual’s present knowledge and<br />
skills and the work requirements of the key position for which the individual<br />
is to be prepared? The answer to that question clarifies the developmental gap.<br />
One way to determine this difference is to compare the individual’s present<br />
work requirements and performance to those required in a targeted key<br />
position. (You might think of that as akin to conducting a performance appraisal<br />
on a position to which the individual aspires or for which he or she is<br />
being groomed.) As a simple example, it may involve comparing how well an<br />
employee could perform his or her immediate supervisor’s job.<br />
Another way to determine this difference is to ask the key position incum-
Developing Internal Successors<br />
237<br />
Exhibit 10-4. A Simplified Model of Steps in Preparing Individual<br />
Development Plans (IDPs)<br />
Step One:<br />
Selecting Possible Key Positions for<br />
Which to Prepare the Individual or Competencies<br />
Needing Development<br />
Step Two:<br />
Considering the Likely Time during Which<br />
the Individual Must Be Prepared<br />
Step Three:<br />
Diagnosing Learning Needs/Competency-Building Needs<br />
Step Four:<br />
Specifying Learning Objectives<br />
Based on the Results of Step Three<br />
Step Five:<br />
Specifying Learning Resources and Strategies<br />
Needed to Achieve Learning Objectives<br />
Step Six:<br />
Specifying Evidence of Accomplishment<br />
Step Seven:<br />
Specifying How the Evidence<br />
Will Be Validated<br />
Step Eight:<br />
Reviewing the Contract<br />
with Consultants<br />
Step Nine:<br />
Carrying Out the Contract<br />
Step Ten:<br />
Evaluating Learning and Outcomes
238 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
bent to review the individual’s present work requirements and performance<br />
against the requirements of the incumbent’s position and to recommend<br />
planned developmental activities to narrow the gap between what the employee<br />
already knows and can do and what he or she should know or do to<br />
perform in the place of the key position incumbent.<br />
When diagnosing learning needs, be aware that the quality of the results<br />
depends on the quality of the diagnosis. Shortcuts are not conducive to useful<br />
outcomes. While busy executives might prefer to short-circuit this process, that<br />
will usually prove to be counterproductive.<br />
Step 4: Specify Learning Objectives Based on the Results of Step 3<br />
Learning objectives are the outcomes or results that are sought from planned<br />
developmental activities. Needs represent deficiencies or problems to be<br />
solved; objectives, on the other hand, represent desired solutions. Each need<br />
should be linked to one—or more—learning objectives to ensure that each<br />
‘‘problem’’ will be solved.<br />
Learning objectives should always be stated in measurable terms. As Robert<br />
F. Mager has noted, learning objectives should usually have three components<br />
8 :<br />
▲ Resources. What equipment, tools, information, or other resources<br />
must be provided for the learner to demonstrate the necessary knowledge,<br />
skills, or abilities?<br />
▲ Criteria. How will achievement of learning objectives be measured?<br />
What minimum performance standards must be achieved for the individual<br />
to demonstrate competence?<br />
▲ Conditions. Under what conditions must the learner perform?<br />
Use the worksheet appearing in Exhibit 10-5 to prepare learning objectives<br />
based on individual developmental needs.<br />
Step 5: Specify Learning Resources and Strategies Needed to Achieve the Learning<br />
Objectives<br />
Learning strategies are the means by which learning objectives are to be<br />
achieved. There are many strategies by which to achieve learning objectives.<br />
Appropriate learning strategies depend on the learning objectives that are to<br />
be met. They answer this question: What planned learning activities will help<br />
narrow the gap between what individuals already know and what they must<br />
know to meet key position requirements in the future?<br />
Learning resources are what must be provided to achieve the learning objectives.<br />
Resources might include people, money, time, expertise, equipment,<br />
or information. People resources could include trainers, coaches, mentors, or<br />
sponsors. Money resources could include funding for participation in on-thejob<br />
or off-the-job developmental experiences. Time resources could include
Developing Internal Successors<br />
239<br />
Exhibit 10-5. A Worksheet for Preparing Learning Objectives Based on<br />
Individual Development Needs<br />
Directions: Use this worksheet to help you prepare specific, measurable learning<br />
objectives to guide the process of meeting individual development needs.<br />
In the left column below, indicate activities, responsibilities, duties, tasks, or essential<br />
job functions to which the individual needs exposure in order to qualify for advancement.<br />
Then, in the right column below, draft specific and measurable learning objectives<br />
to describe what individuals should be able to know, do, or feel upon<br />
completion of a planned development/learning experience tied to those activities,<br />
responsibilities, duties, tasks, or essential job functions. When you finish drafting the<br />
objectives, double-check them to ensure that you have listed (1) resources, such as<br />
information, equipment, or tools that are necessary for demonstrating the objective;<br />
(2) measurable criteria by which to assess how well the learning objective was<br />
achieved.<br />
Indicate Activities, Responsibilities, Duties,<br />
Tasks, or Essential Job Functions to Which<br />
the Individual Needs Exposure in Order to<br />
Qualify for Advancement<br />
Specific and Measurable Learning<br />
Objectives
240 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
released time from work to participate in planned training, education, or<br />
developmental activities. Expertise could include access to knowledgeable<br />
people or information sources. Equipment could include access, for developmental<br />
purposes, to specialized machines or tools. (Use the worksheet in Exhibit<br />
10-6 to identify the resources necessary to develop individuals for key<br />
positions for which they have been targeted.)<br />
Step 6: Specify Evidence of Accomplishment<br />
How can the organization track accomplishment of learning objectives? Answer<br />
that question by providing clear, measurable learning objectives and regular<br />
feedback about the learner’s progress to the learner and those interested<br />
in the learner’s development. If possible, use short, informal project appraisals<br />
or more formalized, written developmental appraisals to document individual<br />
progress, provide evidence of accomplishment, and give the individual specific<br />
feedback that can lead to future performance improvement.<br />
Step 7: Specify How the Evidence Will Be Validated<br />
Be clear about the means by which achievement of learning objectives will be<br />
validated. Will a knowledgeable expert, such as a key position incumbent, review<br />
the results? Will the learner be asked to complete an oral interview to<br />
demonstrate results? Will learners’ performance on developmental projects be<br />
reviewed by those with whom they work? These questions must be answered<br />
separately for each learning objective and for each learning project or assignment<br />
on which the learners are to work to qualify for advancement.<br />
Step 8: Review the Contract with Consultants<br />
Before the individual development plan is approved, it should be reviewed by<br />
knowledgeable experts. In this context, experts and consultants are meant to<br />
have broad meanings. For instance, experts and consultants might include<br />
any—or all—of the following:<br />
▲ Members of SP&M Committees<br />
▲ Friends<br />
▲ Spouses<br />
▲ Immediate Organizational Superiors<br />
▲ The Learners’ Peers<br />
▲ The Learners’ Subordinates<br />
▲ Academic Experts<br />
▲ Recognized Authorities in Other Organizations<br />
Depending on the organization, the individual, and the key position for which<br />
the individual is being prepared, other experts or consultants might prove
Developing Internal Successors<br />
241<br />
Exhibit 10-6. A Worksheet for Identifying the Resources Necessary to<br />
Support Developmental Experiences<br />
Directions: Use this worksheet to help you identify the resources necessary to support<br />
planned learning/developmental experiences.<br />
In the left column below, indicate learning objectives and the planned learning/<br />
developmental experiences that will be used in helping an individual qualify for<br />
promotion. Then, in the right column below, indicate specifically what resources—<br />
such as information, money, trainers, equipment, time, and so forth—will be needed<br />
to allow the individual to meet each learning objective and participate in each<br />
planned learning/developmental experience.<br />
Learning Objectives and Planned<br />
Learning/Developmental Experiences<br />
Intended to Help an Individual Qualify<br />
for Advancement<br />
What Specific Resources Will Be<br />
Needed to Achieve Each Objective and<br />
Participate in Each Planned Learning/<br />
Developmental Experiences?
242 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
useful. For instance, individuals may wish to identify their own mentors and<br />
ask for their advice while negotiating an IDP. In unionized settings, union<br />
members may also wish to include union representatives.<br />
Ask the experts to provide information on which they are qualified to<br />
comment. For instance, from their perspective, does an IDP appear to have<br />
identified the right learning needs, established the right learning objectives,<br />
identified the most appropriate learning strategies and resources, and established<br />
the best means by which to evaluate results? Is it practical and capable<br />
of being completed in the time allowed? What suggested changes, if any, do<br />
the ‘‘experts’’ recommend—and why?<br />
Step 9: Carry Out the Contract<br />
I have found that the implementation of IDPs is the Achilles’ heel of many<br />
otherwise exemplary SP&M programs. While well conceived, many IDPs are<br />
not well executed. Hence, some means must be established to ensure accountability—and<br />
monitor results during the IDP’s time span. That can be done by<br />
planning quarterly IDP review meetings with representatives from each major<br />
area of the organization so they can report on the progress made in their areas.<br />
Alternatively, an SP&M coordinator can pay visits to individual managers to<br />
review the progress made on IDPs in their areas of responsibility. The effect of<br />
these actions is to draw attention to the plans—and to maintain an impetus<br />
for action.<br />
Step 10: Evaluate Learning and Outcomes<br />
Be sure that results (learning outcomes) are measured against intentions<br />
(learning objectives and needs). There are several ways to do that. One way is<br />
to establish periodic developmental assessments, much like project-oriented<br />
performance appraisals. If this approach is used, develop a simple feedback<br />
form to provide documentation of learners’ progress on each developmental<br />
experience. They can then be reviewed upon completion of learning objectives<br />
or at agreed-upon intervals during the developmental experiences.<br />
A second way is to provide a checklist on the IDP form to indicate whether<br />
learning objectives have been achieved. That is a simpler, albeit less ambitious<br />
and rigorous, approach than periodic developmental assessments. However,<br />
it does have the advantage of being a time-efficient approach that makes it<br />
more likely to be used by busy decision-makers. A sample individual development<br />
plan (IDP) is shown in Exhibit 10-7.<br />
Developing Successors Internally<br />
Internal development is a general term that refers to those developmental<br />
activities sponsored by the organization that are intended to help an individual
Developing Internal Successors<br />
243<br />
Exhibit 10-7. A Sample Individual Development Plan<br />
Directions: Use this individual development plan to help an individual qualify for<br />
advancement. The individual’s immediate organizational superior should complete<br />
the form and then discuss it with the individual. If the individual feels that modifications<br />
to it should be made, then the reasons for that should be discussed.<br />
Employee’s Name<br />
Department<br />
Appraiser’s Name<br />
Department<br />
Job Title<br />
Time in Position<br />
Job Title<br />
Time in Position<br />
Today’s Date Plan Covering to<br />
mo./day/yr. mo./day/yr. mo./day/yr.<br />
1. For what key position(s) should this individual be prepared? Alternatively, what<br />
kind of competencies should be developed? Over what time span?<br />
2. What are the individual’s career plans/objectives?<br />
3. What learning objectives should guide the individual’s development? (Note to<br />
appraiser: Be sure to systematically compare the individual’s current job description<br />
to a current job description for the targeted position[s] and list the identifiable<br />
gap below. Alternatively, compare the individual’s present competencies to those<br />
needed in a future position/level.)<br />
(continues)
Developing Internal Successors<br />
244<br />
Exhibit 10-7. (continued)<br />
4. By what methods/strategies may the objectives be met? (Indicate a specific learning<br />
plan below, indicating learning objectives, strategies by which to achieve the<br />
objectives, deadlines for achieving each result, and a checklist indicating whether<br />
the learning objective was achieved.) Add paper if necessary.<br />
Verified?<br />
Learning Deadlines/ Yes No<br />
Objectives Strategies Benchmark Dates ( ) ( )<br />
5. How can the relative success of each learning objective be measured?<br />
Learning<br />
Objectives<br />
Evaluation Approach<br />
qualify for advancement by closing the gap between present work requirements/performance<br />
and future work requirements/potential. Indeed, it is the<br />
means by which individual potential is realized as the future unfolds in the<br />
present.<br />
There are several approaches to internal development. Many ways have<br />
been devised to develop individuals in their present positions, 9 and as many<br />
as 300 ways have been devised to develop individuals. 10 My 2004 survey identified<br />
common approaches to internal development. The survey results are<br />
summarized in Exhibit 10-8, and each strategy is briefly summarized in Exhibit<br />
10-9.<br />
Other strategies may also be used. These include:<br />
1. Who-Based Strategies. These learning strategies focus on pairing up<br />
high potentials with individuals who have special talents—or management<br />
styles—worthy of emulation. For example, matching up a high potential with<br />
a participative manager or those possessing special abilities in startups, turnarounds,<br />
or shutdown efforts.<br />
2. What-Based Strategies. These learning strategies focus on giving high<br />
potentials exposure to specific types of experiences, such as projects, task<br />
forces, committees, jobs, or assignments that require analytical skills, leadership<br />
skills, or skills in starting up an operation, shutting down an operation,<br />
converting a manual to an automated process, or another project of a specific<br />
kind. Additionally, service on interteam, interdepartmental, or interdivisional<br />
(text continues on page 250)
Exhibit 10-8. Methods of Grooming Individuals for Advancement<br />
There are many ways by which to implement succession plans, since individuals may be groomed in different ways. Review the<br />
list of possible methods by which to groom individuals in column 1 below. Then, in column 2 , check () yes or no to indicate<br />
whether your organization is using it and, in column 3, circle the code indicating how effective you feel that method is in<br />
developing people to assume future responsibilities. In column 3, use the following scale: 1 Not at All Effective; 2 Not<br />
Very Effective; 3 Somewhat Effective; 4 Effective; 5 Very Effective.<br />
A<br />
B<br />
Column 1 Column 2 Column 3<br />
Possible Methods by Which<br />
to Groom Individuals<br />
Off-the-Job Degree Programs<br />
Sponsored by Colleges/ Universities<br />
On-Site Degree Programs Sponsored<br />
by Colleges/Universities<br />
Is Your Organization Using This<br />
Method to Develop People?<br />
Yes<br />
No<br />
How Effective Do You Feel<br />
This Method Is for<br />
Developing People to<br />
Assume Future Job<br />
Responsibilities?<br />
Not at<br />
All Effective<br />
1 2 3 4 5<br />
(Mean Response)<br />
56% 44% 3.8<br />
11% 89% 2.78<br />
Very<br />
Effective<br />
(continues)
Exhibit 10-8. (continued)<br />
C<br />
D<br />
E<br />
F<br />
Off-the-Job Public Seminars Sponsored<br />
by Vendors<br />
Off-the-Job Public Seminars Sponsored<br />
by Universities<br />
In-House Classroom Courses Tailor-<br />
Made for Management-Level Employees<br />
In-House Classroom Courses Purchased<br />
from Outside Sources and<br />
Modified for In-House Use<br />
56% 44% 3.11<br />
100% 0% 3.44<br />
89% 11% 3.67<br />
56% 44% 3.22<br />
G Unplanned On-the-Job Training 78% 22% 3.33<br />
H Planned On-the-Job Training 100% 0% 4.11<br />
I Unplanned Mentoring Programs 44% 56% 3.33<br />
J Planned Mentoring Programs 89% 11% 4.33<br />
K Unplanned Job Rotation Programs 11% 89% 3.11<br />
L Planned Job Rotation Programs 56% 44% 4.22<br />
Source: William J. Rothwell, Results of a 2004 Survey on Succession Planning and Management Practices. Unpublished survey results (University Park, Penn.: The Pennsylvania State University, 2004).
Developing Internal Successors<br />
247<br />
Exhibit 10-9. Key Strategies for Internal Development<br />
Appropriate and<br />
Strategy How to Use It Inappropriate Uses<br />
1. Off-the-Job Clarify job-related Appropriate:<br />
Degree courses tied to work —For meeting specialized<br />
Programs requirements of key individual needs that are<br />
Sponsored positions. not widely enough shared<br />
by Col- Compare individual to warrant on-site training<br />
leges/Uni- skills to work require- Inappropriate:<br />
versities ments. —For meeting highly spe-<br />
Identify courses re- cialized needs unique to<br />
lated to individual<br />
one employer<br />
needs.<br />
Tie job requirements<br />
to degree/course requirements,<br />
if possible.<br />
2. On-Site Same basic procedure Appropriate:<br />
Degree as listed in #1 above. —When funding and time<br />
Programs<br />
are available<br />
Sponsored<br />
—When several people<br />
by Col-<br />
share similar needs<br />
leges/Uni-<br />
—When in-house expertise<br />
versities<br />
is not available<br />
Inappropriate:<br />
—When conditions listed<br />
above cannot be met<br />
—For meeting highly specialized<br />
needs<br />
3. Off-the-Job Compare work re- Appropriate:<br />
Public Sem- quirements to the in- —When needs are limited<br />
inars Spon- structional objectives to a few people<br />
sored by indicated by informa- —When in-house expertise<br />
Vendors tion about the off-the- does not match the venjob<br />
seminar.<br />
dor’s<br />
Inappropriate:<br />
—For meeting needs unique<br />
to one employer<br />
(continues)
248 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 10-9. (continued)<br />
Appropriate and<br />
Strategy How to Use It Inappropriate Uses<br />
4. Off-the-Job Same as #3 above. Appropriate:<br />
Public Sem-<br />
—Same as #3 above<br />
inars Spon- Inappropriate:<br />
sored by<br />
—Same as #3 above<br />
Universities<br />
5. In-House Define specific instruc- Appropriate:<br />
Classroom tional objectives that —When adequate re-<br />
Courses are directly related to sources exist<br />
Tailor- work requirements in —When in-house expertise<br />
Made for key positions. is unavailable<br />
Employees Use the courses to —When needs can be met<br />
achieve instructional in time<br />
objectives for many in- Inappropriate:<br />
dividuals.<br />
—For meeting requirements<br />
unique to one organization<br />
—For meeting objectives requiring<br />
lengthy and experiential<br />
learning<br />
6. In-House Identify a learning Appropriate:<br />
Classroom need shared by more —When several people<br />
Courses than one person. share a common learning<br />
Purchased Find published train- need<br />
from Out- ing material from —When expertise exists to<br />
side Sources commercial publishers modify materials develand<br />
Modi- and modify for in- oped outside the organified<br />
for In- house use. zation<br />
House Use Deliver to groups. —When appropriate training<br />
materials can be located<br />
7. Unplanned Match up a high- Appropriate:<br />
On-the-Job potential employee —When time, money, and<br />
Training with an exemplary staffing are not of primary<br />
performer in a key po- importance<br />
sition. Inappropriate:<br />
Permit long-term ob- —For efficiently and effecservation<br />
of the exem- tively preparing highplar<br />
by the highpotential.<br />
potentials to be succes-<br />
sors for key job incumbents
Developing Internal Successors<br />
249<br />
8. Planned Develop a detailed Appropriate:<br />
On-the-Job training plan allowing —When key job incumbent<br />
Training a ‘‘tell, show, do, fol- is an exemplar<br />
low-up approach’’ to —When time and safety<br />
instruction.<br />
considerations permit<br />
one-on-one instruction<br />
Inappropriate:<br />
—When the conditions<br />
listed above cannot be<br />
met<br />
9. Unplanned Make people aware of Appropriate:<br />
Mentoring what mentoring is. —For establishing the basis<br />
Programs Help individuals un- for mentoring without obderstand<br />
how they can ligating the organization<br />
establish mentoring<br />
to oversee it<br />
relationships and real- —For encouraging individize<br />
the chief benefits<br />
ual autonomy<br />
from them. Inappropriate:<br />
Encourage key job in- —For encouraging diversity<br />
cumbents and exem- and building relationships<br />
plars to serve as<br />
mentors.<br />
across ‘‘unlike’’ individual<br />
—For transferring specific<br />
skills<br />
10. Planned Match up individuals Appropriate:<br />
Mentoring who may establish —For building top-level<br />
Programs useful mentor-protégé ownership and familiarity<br />
relationships.<br />
with high-potentials<br />
Provide training to —For pairing up ‘‘unlike inmentors<br />
on effective<br />
dividuals’’ on occasion<br />
mentoring skills and to Inappropriate:<br />
protégés on the best —For building specific skills<br />
ways to take advantage<br />
of mentoring relationships.<br />
(continues)
250 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 10-9. (continued)<br />
Appropriate and<br />
Strategy How to Use It Inappropriate Uses<br />
11. Unplanned Arrange to move indi- Appropriate:<br />
Job Rotation viduals into positions —When sufficient staffing<br />
Programs that will give them exists<br />
knowledge, skills, or —When individual moveabilities<br />
they will need ment will not create a sigin<br />
the future, prefera- nificant productivity loss<br />
bly (but not necessar- to the organization<br />
ily) geared to Inappropriate:<br />
advancement.<br />
—When the conditions<br />
Track individual prog- listed above cannot be<br />
ress.<br />
met<br />
12. Planned Job Develop a specific Appropriate:<br />
Rotation Learning Contract (or —When there is sufficient<br />
Programs IDP) that clarifies the time and staffing to permit<br />
learning objectives to the rotation to be effective<br />
be achieved by the ro- Inappropriate:<br />
tation.<br />
—When time and staffing<br />
Ensure that the work will not permit planned<br />
activities in which the learning<br />
individual gains experience<br />
are directly related<br />
to future work<br />
requirements.<br />
Monitor work progress<br />
through periodic feedback<br />
to the individual<br />
and through performance<br />
appraisal geared<br />
to the rotation and related<br />
to future potential.<br />
committees can give the individual visibility and exposure to new people and<br />
new functions.<br />
3. When-Based Strategies. These learning strategies focus on giving high<br />
potentials exposure to time pressure. For example, meeting a nearly impossible<br />
deadline or beating a wily competitor to market.<br />
4. Where-Based Strategies. These learning strategies focus on giving high<br />
potentials exposure to special locations or cultures. For example, sending high
Developing Internal Successors<br />
251<br />
potentials on international job rotations or assignments to give them exposure<br />
to the business in another culture or else send them to another domestic site<br />
for a special project. Like any job rotation or temporary assignment, international<br />
assignments should be preceded by a well-prepared plan that clarifies<br />
what the individual is to do and learn—and why that is worth doing or learning.<br />
This approach will shape expectations and thereby exert a powerful influence<br />
on what people learn as well as on how they perform.<br />
5. Why-Based Strategies. These learning strategies focus on giving high<br />
potentials exposure to mission-driven change efforts that are, in turn, learning<br />
experiences. For example, asking high potentials to pioneer startup efforts or<br />
to visit competitors or ‘‘best-in-class’’ organizations to find out ‘‘why they do<br />
what they do.’’<br />
6. How-Based Strategies. These learning strategies focus on furnishing<br />
high potentials with in-depth, ‘‘how-to’’ knowledge of different aspects of the<br />
business in which they are otherwise weak. Examples might include lengthy<br />
job assignments, task force assignments, or job rotations that expose a high<br />
potential to another area of the business with which he or she is unfamiliar.<br />
The Role of Leadership Development Programs<br />
Leadership development programs are quite important to succession planning.<br />
Indeed, in some cases, a leadership development program is the banner<br />
under which potential successors are developed in a systematic, and even visible,<br />
way. Leadership programs may also develop groups of people so as to<br />
create talent pools.<br />
Much has been written about leadership development 11 and leadership<br />
development programs. 12 Their value is that they can provide groups of people<br />
with structure—that is, an organizational scheme—by which to build competencies<br />
systematically. There are two basic philosophies that can drive leadership<br />
programs. (And they may be summarized with the age-old question: Are<br />
leaders born, or are they made?) One philosophy is to make it easy for anyone<br />
to get into the program but tough to stay in, or to ‘‘graduate.’’ That philosophy<br />
goes well with a talent pool approach to SP&M. A second philosophy is to<br />
make it very difficult to qualify for the program but easy to stay in. That philosophy<br />
goes well with an approach that integrates employee selection with development.<br />
Some decision-makers prefer to use a leadership development program as<br />
a means to fire-test prospective successors. They are tested at every turn while<br />
in the program. That tough-love philosophy suggests that qualifying for promotion<br />
means ‘‘earning one’s stripes.’’ Those who prefer not to do that do<br />
not have to. (But they will not be promoted, either.) Those who do have the<br />
tenacity to stick with it end up by earning credibility with followers.
252 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
The Role of Coaching<br />
Coaching is a means to the end of building talent. While much has been written<br />
about it, 13 and it is true that coaching can be applied for many purposes to<br />
correct deficiencies in performance or to build skills, it is important to SP&M<br />
because it can be an important tool in grooming prospective successors for<br />
the future. Generally speaking, training is planned and focused, while coaching<br />
tends to be more spur-of-the-moment and driven by moment-by-moment<br />
efforts to help others perform. 14 In an age where speed equals advantage, realtime<br />
grooming has appeal to many managers as a means of competency-building<br />
at the speed of change.<br />
James Hunt and Joseph Weintraub provide specific advice about how managers<br />
should coach. They should do the following: 15<br />
▲ Make the effort to identify their best people. Coaching is not just a ‘‘fixit<br />
strategy’’ for poor performers; rather, it is also to be used to prepare<br />
promising people for the future.<br />
▲ Encourage their people to seek out coaching, whether planned or spontaneous.<br />
▲ Watch how they react to what their people do. In other words, good<br />
managers avoid strong emotions and criticism of their best people.<br />
▲ Make time to provide coaching and let people know that.<br />
▲ Ask questions and avoid dogmatic statements about what people should<br />
do. By asking questions, managers force employees to think things<br />
through. That has a development purpose. In time, employees will<br />
begin to think like the manager. But dogmatic orders will discourage<br />
questions and will not prompt people to think for themselves or even<br />
model how their immediate supervisor thinks.<br />
▲ Listen carefully to what people say—and how they say it. Listening also<br />
demonstrates that the manager actually cares about their people, and<br />
the importance of emotional bonding should not be minimized.<br />
▲ Model the behaviors of those who need coaching. Let employees see<br />
the manager ask for help and use it.<br />
▲ Provide useful feedback. Make sure it is timely and specific. If people<br />
do not ask for feedback on what they did, give it to them anyway if it<br />
will help their development for the future.<br />
▲ Be sure to recognize positive performance and comment on it as well<br />
as the not-so-good work that people do.<br />
Various organizations now offer certification in coaching, 16 and information<br />
about the competencies of effective coaches may be found through a simple<br />
Web search. 17
Developing Internal Successors<br />
253<br />
The Role of Executive Coaching<br />
Executive coaching has grown in popularity. 18 Some people have even hung<br />
out their shingles as full-time executive coaches. Professional societies have<br />
been formed of executive coaches 19 ; people can be certified as executive<br />
coaches 20 ; and in some quarters executive coaches rank right up there with<br />
personal trainers as an executive perk. Executive coaching competencies have<br />
been identified, and they are distinct from more general coaching competencies.<br />
21<br />
But the importance of executive coaching in succession cannot be understated.<br />
One strategy is to go ahead and promote people who are clearly not ready<br />
for more demanding managerial (or technical) responsibility and then give<br />
those people executive coaches as a way to offer them real-time, on-the-job<br />
training. While that is not a strategy that the author of this book advocates, it<br />
is one that is being used in organizations where the leaders fell asleep on<br />
succession matters until it was too late.<br />
There are two kinds of executive coaches. They should be clearly distinguished.<br />
A job content coach provides guidance to individuals who are not up to<br />
snuff on the job content. An example would be to assign the organization’s<br />
retired CEO to the current CEO as a coach. The former CEO clearly understands<br />
what the job entails and can provide guidance accordingly.<br />
A process coach is different. Akin to a process consultant, a process executive<br />
coach focuses on the image that the executive projects, the impact that he<br />
or she has on a group, and how he or she works with a group to achieve<br />
results. No knowledge of the job content is needed. But what is needed is<br />
awareness of the specialized competencies associated with process consultation,<br />
an organization development intervention invented by Edgar Schein. 22<br />
The executive coaching process should be clearly focused and implemented.<br />
It begins with establishing a contract between the coach and the<br />
coachee that sets forth the goals of the effort and describes the schedule. Nondisclosure<br />
agreements are typical, especially when the coach is made privy to<br />
sensitive, even proprietary, information during the course of the consulting<br />
engagement. The work plan for the consulting effort is clearly stated. Not all<br />
work has to be carried out face-to-face, and it is possible to arrange phone<br />
conversations, Web conversations, instant chats, and other real-time, virtually<br />
enabled approaches to the executive coaching process. Executive coaches may<br />
also administer psychological assessments to the executive, ranging from those<br />
that are available off-the-shelf to those that require a license or degree to administer.<br />
The Role of Mentoring<br />
A mentor is simply a teacher. Mentoring is thus the process of teaching others.<br />
In common language, a mentor is a helper who assists people in learning. The
254 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
person receiving help is called a mentee or a protégé. Mentors should not be<br />
confused with sponsors. A sponsor is someone who actually opens doors and<br />
provides access to visibility, people, and assignments or experiences; a mentor<br />
is someone who provides advice. Of course, it is possible that mentors can<br />
become sponsors or that sponsors can engage in mentoring.<br />
Mentoring has fired the imagination of managers and others, and much<br />
has been written about it in recent years. 23 One reason is that mentors can help<br />
build bench strength and talent in organizations by providing support to others<br />
to build their competencies in line with company needs. Mentoring, like<br />
coaching and executive coaching, can thus provide a means to the end of<br />
building bench strength. But mentoring implies something different from<br />
coaching. While a coach provides support and direction just as a mentor does,<br />
a mentor is interested in helping someone succeed. By definition, mentors are<br />
usually not the immediate organizational supervisors of those they mentor,<br />
since a reporting relationship may interfere with the objectivity essential to a<br />
true helping relationship. (In short, a mentor cannot stand to gain or lose by<br />
his or her mentee, but a coach can. In fact, just as athletic coaches are selfinterested<br />
in how well their players perform, so are immediate supervisors.)<br />
Mentoring programs may be established by organizations. They may be<br />
formal (planned) or informal (unplanned). A typical approach to a formal program<br />
is that the organization’s HR department will play matchmaker, pairing<br />
up a promising person who wants a mentor to someone who is at least one<br />
or more levels above that person on the organization chart but outside the<br />
immediate chain of command. The HR department may even pay for breakfast,<br />
lunch, or dinner for the two people to meet and determine if their relationship<br />
might have promise. If so, then they continue it on their own without further<br />
HR department involvement. Also, typically, a formal mentoring program may<br />
involve training for aspiring mentors and/or mentees, since people do not just<br />
naturally know how to play these parts. (The CD-ROM included with this book<br />
provides a short program on mentoring.)<br />
In an informal mentoring program—which is an oxymoron, since something<br />
unplanned cannot really be a ‘‘program’’—individuals are merely encouraged<br />
to seek out and approach others who may be helpful to them and to<br />
their development. Successful people have almost always had mentors. Consequently,<br />
mentoring requires mentees to take initiative to seek out those who<br />
might help them and then ask for help. That help could be situation-specific,<br />
such as ‘‘How do I deal with this situation?’’ or comprehensive, such as ‘‘How<br />
do I systematically prepare myself for the future and then follow through on<br />
my plan for individual development?’’<br />
Mentors are helpful because they may be in the job that the mentees aspire<br />
to, and hence they are well positioned to offer advice. After all, one key assumption<br />
of succession planning and management is that individuals cannot<br />
direct their own development for the simple reason that they have no experience<br />
base to draw on. And it is in exactly this respect that a mentor can help.
Developing Internal Successors<br />
255<br />
How can mentoring play a role in succession planning and management?<br />
The relationship should be obvious. In closing developmental gaps between<br />
the competencies that individuals possess now and what they need to possess<br />
to qualify for advancement, they must seek out people, work assignments, and<br />
other experiences that will prepare them for the future and will equip them<br />
with the competencies they need. Mentors can provide advice about what people<br />
to seek, what work assignments to seek, and (perhaps most important<br />
though sometimes overlooked) mentors can provide advice on handling company<br />
politics that may help or hinder progress. To gain the most from a mentoring<br />
effort, start with a plan. That plan can be prepared by the mentee to<br />
‘‘ask for help,’’ but should be very clear about what help is needed.<br />
A unique problem to consider in mentoring is the so-called developmental<br />
dilemma. The development dilemma takes its name from a special problem<br />
that may come up in the mentoring process. In the years following the Clarence<br />
Thomas and Anita Hill scandal that rocked the nation, cross-gender mentoring<br />
has been complicated by concerns over appearances. The point is that<br />
older male executives who mentor younger female executives, or older female<br />
executives who mentor younger male executives, may be misperceived in<br />
those relationships. Typically a mentoring relationship requires interactions<br />
such as meetings behind closed doors, breakfast, lunch or dinner meetings, or<br />
other meetings in otherwise less than formal settings. Since tongue wagging is<br />
a popular pastime, it is common for others to talk about what they think they<br />
see. The situation is so bad in some quarters that older executives will have<br />
mentoring meetings only if they can bring a third person along as chaperone<br />
or else meet in open air areas where everything can be seen.<br />
How can this problem be handled? Some ways that the organization can<br />
help is to:<br />
1. Provide advice about how to deal with the problems of perceptions and<br />
how to manage them.<br />
2. Take steps to clarify for others who may see two people meeting to<br />
clarify, casually but in advance, what the meeting is about and why it is<br />
being conducted to give those who wag their tongues less to talk about.<br />
3. Ignore the problem all together and only deal with rumors as they<br />
spring up.<br />
4. Provide training to mentors and mentees, covering cross-gender issues<br />
as part of the discussion.<br />
The Role of Action Learning<br />
Action learning is yet another way—like coaching, executive coaching, mentoring,<br />
and leadership development programs—to build competencies. Action<br />
learning, while invented in 1971 by Reg Revans, 24 literally means learning
256 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
through action. While various approaches to it exist, 25 they share a bias to<br />
action. This is not online or onsite training; rather, it is practical learning that<br />
builds competencies and is focused around solving problems, creating visions,<br />
seeking goals, or leveraging strengths. 26<br />
Typically, participants in action learning are assembled to work on a practical,<br />
real-world problem. 27 They may be chosen based on their individual abilities<br />
that will contribute to the issue that brings the team together and a<br />
developmental need to be met. They are asked to collect information about an<br />
issue, experiment with solutions or implement them, and learn while they do<br />
that.<br />
To use action learning appropriately, organizational leaders must select the<br />
right people to put on the right teams. By doing that, individuals learn while<br />
doing. And the organization gains a solution to a problem, a clearly conceptualized<br />
vision, or a quantum leap in leveraging a strength.<br />
Summary<br />
Promotion from within is an important way to implement succession plans. To<br />
that end, the organization should test bench strength, establish an unequivocal<br />
internal promotion policy to ensure internal promotion when appropriate,<br />
prepare individual development plans (IDPs) to close the gap between what<br />
individuals presently do and what they must do to qualify for promotion, and<br />
use internal development when appropriate to realize the learning objectives<br />
established on IDPs.<br />
But internal promotion and internal development are not the only means<br />
by which succession planning and management needs can be met. Alternative<br />
means, which usually fall outside the realm of succession planning and management,<br />
are treated in the next chapter. In these days of business process<br />
reengineering and process improvement, those involved in succession planning<br />
and management should have some awareness of approaches to meeting<br />
work requirements other than traditional succession methods relying on job<br />
movements.
C H A P T E R 1 1<br />
ASSESSING ALTERNATIVES TO<br />
INTERNAL DEVELOPMENT<br />
The traditional approach is to prepare successors for key positions internally.<br />
Some descriptions of succession planning and management (SP&M) treat it as<br />
nothing more than a form of replacement planning. In this process, several<br />
key assumptions are usually made: (1) key positions will be replaced whenever<br />
a vacancy occurs; (2) employees already working in the organization—and<br />
often within the function—will be the prime source of replacements; and (3)<br />
a key measure of effectiveness is the percentage of key positions that can be<br />
filled from within, with minimal delay and uproar, whenever a vacancy occurs.<br />
Some organizations add a fourth: the relative racial and sexual diversity of<br />
replacements should be enhanced so that protected labor groups are well<br />
represented among the qualified replacements for key positions prepared internally.<br />
A systematic approach to SP&M has major advantages, of course. First, it<br />
makes succession predictable. Each time a vacancy in a key position occurs,<br />
people know precisely what to do: find a replacement. Second, since a high<br />
percentage of successors are assumed to be employed by the organization,<br />
investments in employee development can be justified to minimize losses in<br />
productivity and turnover.<br />
However, when SP&M is treated in this way it can occasionally become a<br />
mindless exercise in ‘‘filling in the blank name on the organization chart.’’<br />
Concern about that should be sufficient to lead strategists to explore innovative<br />
alternatives to the traditional replacement-from-within mentality. This<br />
chapter focuses on those alternatives—and on when they should be used instead<br />
of the traditional approach to SP&M.<br />
The Need to Manage for ‘‘Getting the Work Done’’ Rather<br />
than ‘‘Managing Succession’’<br />
‘‘The natural response to a problem,’’ writes James L. Adams in Conceptual<br />
Blockbusting, ‘‘seems to be to try to get rid of it by finding an answer—often<br />
taking the first answer that occurs and pursuing it because of one’s reluctance<br />
257
258 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
to spend the time and mental effort needed to conjure up a richer storehouse<br />
of alternatives from which to choose. This hit-and-run approach to problemsolving<br />
begets all sorts of oddities.’’ 1<br />
Succession planning and management can fall victim to the same natural<br />
response to which Adams refers: Whenever a vacancy occurs, the organization<br />
is confronted with a problem. The ‘‘natural response’’ is to find an immediate<br />
replacement. There may also be a tendency to ‘‘clone the incumbent’’—that<br />
is, find someone who resembles the incumbent in order to minimize the need<br />
to make adjustments to a new person. But replacement is not always appropriate.<br />
Consider a replacement unnecessary when any one of the questions<br />
listed below can be answered yes. (Review the flowchart appearing in Exhibit<br />
11-1 as a simplified aid in helping with this decision process.)<br />
Question 1: Is the Key Position No Longer Necessary?<br />
A replacement is not necessary when a key position is no longer worth doing.<br />
In that situation, a ‘‘key’’ position is no longer ‘‘key.’’ Decision-makers can<br />
simply choose not to fill the key position when a vacancy occurs. Of course, if<br />
this question is answered no, then a replacement may still have to be found.<br />
Question 2: Can a Key Position Be Rendered Unnecessary by Finding New Ways to Achieve<br />
Comparable Results?<br />
A replacement may not be necessary if key work outcomes can be achieved<br />
in new ways. In this sense, then, SP&M can be affected by business process<br />
reengineering, defined by best-selling authors Michael Hammer and James<br />
Champy as ‘‘the fundamental rethinking and radical redesign of business processes<br />
to achieve dramatic improvements in critical, contemporary measures of<br />
performance, such as cost, quality, service, and speed.’’ 2 If the organization<br />
can reengineer work processes and thereby eliminate positions that were once<br />
key to an old process, then replacing a key job incumbent will be unnecessary.<br />
In short, key positions may be reengineered out of existence.<br />
To that end, try applying the model suggested by Rummler and Brache to<br />
process improvement 3 :<br />
1. Identify the critical business issue or process that is to be reexamined.<br />
2. Select critical processes related to the issue or subprocesses.<br />
3. Select a leader and members for a process improvement team.<br />
4. Train the team on process improvement methods.<br />
5. Develop ‘‘is’’ maps to show the relationship between where and how<br />
work flows into a system, how it is transformed through work methods,<br />
and where it goes when the products or services are provided to<br />
the ‘‘customers.’’<br />
(text continues on page 265)
Assessing Alternatives to Internal Development<br />
259<br />
Exhibit 11-1. Deciding When Replacing a Key Job Incumbent Is<br />
Unnecessary: A Flowchart<br />
Is the key<br />
position<br />
no longer<br />
necessary?<br />
Yes<br />
Do not fill the key<br />
position. Leave it vacant.<br />
No<br />
Can a key position<br />
be rendered unnecessary<br />
by finding new<br />
ways to achieve comparable<br />
results?<br />
Yes<br />
Do not fill the key position.<br />
Apply reengineering to<br />
achieve the same results.<br />
No<br />
Can a key position<br />
be rendered unnecessary<br />
by redistributing<br />
the duties to a team in<br />
the same part of the<br />
organization?<br />
Yes<br />
Are the members of<br />
the same part<br />
of the organization<br />
capable of working<br />
together as a team?<br />
No<br />
No<br />
Yes<br />
(continues)
260 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 11-1. (continued)<br />
Use team<br />
building.<br />
Are members of<br />
the same part of the<br />
organization capable<br />
of absorbing the<br />
extra duties without<br />
sacrificing productivity<br />
in their present job<br />
duties?<br />
No<br />
Review work<br />
priorities.<br />
Yes<br />
Form team(s) and<br />
do not replace the<br />
key position.
Assessing Alternatives to Internal Development<br />
261<br />
Yes<br />
Can a key<br />
position be<br />
rendered unnecessary<br />
by reallocating<br />
the duties to other<br />
parts of the<br />
organization?<br />
No<br />
Do members of<br />
other parts of the<br />
organization possess the<br />
neccessary expertise to<br />
carry out the work?<br />
No<br />
Provide<br />
training if<br />
time allows.<br />
Otherwise,<br />
use another<br />
approach.<br />
Yes<br />
No<br />
Are members of<br />
another part of the<br />
organization capable<br />
of absorbing the<br />
extra duties without<br />
sacrificing productivity<br />
in their present job<br />
duties?<br />
Review work<br />
priorities.<br />
Yes<br />
(continues)
262 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 11-1. (continued)<br />
Reallocate the work of the<br />
key position to another<br />
part of the organization.<br />
Can a key position be<br />
rendered unnecessary by<br />
outsourcing the work?<br />
Yes<br />
Is the work critical to<br />
the continued survival<br />
of the organization?<br />
Yes<br />
No<br />
Replace the<br />
key position<br />
incumbent.<br />
No<br />
Yes<br />
Is organizational<br />
control essential to<br />
meeting stringent<br />
work or quality<br />
requirements?<br />
Replace the<br />
key position<br />
incumbent.<br />
No
Assessing Alternatives to Internal Development<br />
263<br />
Outsource the job duties of<br />
the key position.<br />
Can a key position be<br />
rendered unnecessary<br />
by using flexible<br />
staffing approaches?<br />
Yes<br />
Yes<br />
Is the work critical to<br />
the survival of the<br />
organization?<br />
No<br />
Replace the<br />
key position<br />
incumbent.<br />
No<br />
Yes<br />
Is organizational<br />
control essential to<br />
meeting stringent<br />
work or quality<br />
requirements?<br />
No<br />
Replace the<br />
key position<br />
incumbent.<br />
Use flexible staffing<br />
approaches to achieve<br />
the results desired from<br />
the key position.<br />
(continues)
264 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 11-1. (continued)<br />
Can combining the<br />
approaches listed above<br />
render unnecessary the<br />
need for a replacement<br />
in a key position?<br />
Yes<br />
Decide which strategies to<br />
combine. Divide up work<br />
requirements as necessary<br />
and use different strategies<br />
to meet them. Do not<br />
replace the key position<br />
incumbent.<br />
No<br />
Use the traditional<br />
approach to succession<br />
planning, striving to<br />
replace the key job<br />
incumbent—probably<br />
from within.
Assessing Alternatives to Internal Development<br />
265<br />
6. Find ‘‘disconnects,’’ which are missing, redundant, or illogical factors<br />
that could affect the critical business issue or the process.<br />
7. Analyze the disconnects.<br />
8. Develop a ‘‘should’’ map to present a more efficient or effective<br />
method of handling the work.<br />
9. Establish measures or standards for what is desired.<br />
10. Recommend changes.<br />
11. Implement the changes.<br />
In essence, the same steps described above can be used to determine whether<br />
there are ways to ‘‘engineer a key position out of existence.’’ If there is, then<br />
no successor will be needed. (However, the work process may be broken up<br />
and reallocated, necessitating new competencies for those who absorb the<br />
new duties.)<br />
Question 3: Can a Key Position Be Rendered Unnecessary by Redistributing the Duties to<br />
aTeam?<br />
If the answer is yes, then it should be possible to achieve the same work results<br />
by placing responsibility in a team of workers from the same function or work<br />
unit. However, two caveats should be considered. First, if the workers have<br />
never functioned as a team, then they will probably require team-building and<br />
training on team skills to work as a cohesive group. Second, if prospective<br />
team members are already working at—or beyond—their individual capacities,<br />
then loading additional duties on a team will not be successful.<br />
Question 4: Can a Key Position Be Rendered Unnecessary by Reallocating the Duties to<br />
Other Parts of the Organization?<br />
In short, is it possible to avoid filling a key position by reorganizing, moving<br />
the work responsibility to another function or organizational unit? If the answer<br />
is yes, then replacing a key job incumbent may prove to be unnecessary.<br />
But, as in redistributing work to a team in the same part of the organization,<br />
assess whether the inheritors of key position duties are trained adequately to<br />
perform the work and can do them without sacrificing productivity in their<br />
present jobs. If both conditions can be met, consider moving responsibilities<br />
to another part of the organization to avoid replacing a key job incumbent.<br />
Question 5: Can a Key Position Be Rendered Unnecessary by Outsourcing the Work?<br />
If the answer is yes, then replacing a key job incumbent may be unnecessary.<br />
The same results may be achieved more cost-effectively than by replacing a key<br />
job incumbent. Pay particular attention to two key issues when answering the<br />
question: criticality and control. If the work is critical to the continued sur-
266 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
vival of the organization, then outsourcing it may be unwise because that may<br />
vest too much influence in an individual or group having little or no stake in<br />
the organization’s continued survival. If the work must meet stringent, specialized<br />
requirements for which few external sources can be found, then outsourcing<br />
may also prove to be unwise because controlling the activities of an<br />
external contractor may become as time-consuming as performing the work<br />
in-house.<br />
Question 6: Can a Key Position Be Rendered Unnecessary by Using Flexible Staffing<br />
Approaches?<br />
Can the same results be achieved through the use of permanent part-time or<br />
temporary part-time staff, rotating employees, or internships? If the answer is<br />
yes, then replacing a key job incumbent may be unnecessary. However, as in<br />
outsourcing, pay attention to criticality and control. If the work is critical to<br />
the continued survival of the organization, then using innovative staffing approaches<br />
may prove to be unwise because that will grant too much influence<br />
to an individual or group with little or no stake in the organization’s existence.<br />
If the work must meet stringent, specialized requirements that require mastery,<br />
then part-time talent may not be able to achieve or maintain that mastery.<br />
Question 7: Can Combining the Approaches Listed Above Obviate the Need for a<br />
Replacement in a Key Position?<br />
In other words, is it possible to split apart the key results or outcomes desired<br />
from the key position and handle them separately—through reengineering,<br />
team-based management, organizational redesign, or other means? If that<br />
question can be answered yes, then it should be possible to ensure that the<br />
organization achieves the same results as those provided by the key job incumbent—but<br />
without the need for a replacement. Use the worksheet in Exhibit<br />
11-2 to decide when it is possible to answer yes to any one—or all—of the<br />
questions listed above.<br />
Innovative Approaches to Tapping the Retiree Base<br />
Succession planning and management is not an all-or-nothing proposition. It<br />
is also possible to meet staffing needs to get the work done by tapping the<br />
very group that is causing some of the problems—that is, baby boomers who<br />
are nearing retirement. And that is also not an all-or-nothing proposition in<br />
the sense that discouraging people from retiring, while one option, is not the<br />
only way to tap into the power of those who are eligible to retire.<br />
The word retire—taken from the Middle French word retirer (which<br />
means ‘‘to draw back’’)—is being reinvented now. Much evidence exists to<br />
support that. 4 Older workers are delaying their retirement due to a rollercoaster<br />
stock market and eroding health insurance coverage, which is (in turn)
Assessing Alternatives to Internal Development<br />
267<br />
Exhibit 11-2. A Worksheet for Identifying Alternatives to the Traditional<br />
Approach to Succession Planning and Management<br />
Directions: Use this worksheet to help you identify alternatives to the traditional approach<br />
to succession planning—that is, promoting from within the organization and<br />
within the function.<br />
In the first space below, identify by title the key position that you are examining. Then<br />
answer the questions about it appearing in the left column of the second space<br />
below. Write your responses in the right column, making notes about ways by which<br />
you can use alternatives to the traditional approach to succession planning. When<br />
you finish, share your responses with others in the organization for their thoughts—<br />
and, if possible, to compare their comments to yours. Add paper if necessary.<br />
There are no ‘‘right’’ or ‘‘wrong’’ answers to this activity; rather, the aim is to provide<br />
you with an aid to creative ways by which to meet succession planning needs.<br />
Space One: What is the key position? (Provide a job title.)<br />
Questions About the Key<br />
Position<br />
Question Responses<br />
(Describe ideas to avoid<br />
simple replacement<br />
from<br />
within.)<br />
Is the key position no<br />
longer necessary?<br />
Can a key position be<br />
rendered unnecessary<br />
by finding new ways to<br />
achieve comparable results?<br />
(continues)
268 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 11-2. (continued)<br />
Questions About the Key<br />
Position<br />
Can a key position be<br />
rendered unnecessary<br />
by redistributing the duties<br />
to a team in the<br />
same part of the organization?<br />
Question Responses<br />
(Describe ideas to avoid<br />
simple replacement<br />
from<br />
within)<br />
Can a key position be<br />
rendered unnecessary<br />
by reallocating the duties<br />
to other parts of the<br />
organization?<br />
Can a key position be<br />
rendered unnecessary<br />
by outsourcing the<br />
work?<br />
Can a key position be<br />
rendered unnecessary<br />
by using flexible staffing<br />
approaches?<br />
Can combining the approaches<br />
listed above<br />
eliminate the need for a<br />
replacement in a key position?
Assessing Alternatives to Internal Development<br />
269<br />
eroding the value of their pension packages. Some observers of the business<br />
scene even doubt that a talent shortage will appear. 5 At the same time, employers<br />
do not want to experience the confusion that results from filling tough-tofill<br />
positions with green, off-the-street (or at least untested) hires. One researcher<br />
found that only 12 to 16 percent of retirees currently work past retirement<br />
but that 80 percent of baby boomers intend to do so. 6<br />
If you say ‘‘reinvent retirement’’ today to most employers, the first thing<br />
that crosses their minds is to discourage experienced workers from exercising<br />
their retirement option when eligible or else to call retired people back to fulltime<br />
work. But many other options exist, and reinventing retirement means<br />
tapping the retiree base in creative ways to meet the organization’s short-term<br />
and long-term talent needs.<br />
There are actually many ways that retirees could be tapped. They can be<br />
temps; contingent workers; consultants; teleworkers or telecommuters; assigned<br />
to special projects, perhaps at distant (even international) locations; or<br />
assigned as coaches or mentors for their successors. Many other options are<br />
also possible (see Exhibit 11-3).<br />
Tapping the retiree base will be a challenge for the future. A first step is to<br />
establish who wants to do what, who wants to work when and how, and how<br />
to find and tap the talents of retirees on demand. That will require creative<br />
applications of exit interviews, conducted with retirees, and periodic followups<br />
with retirees to see if they have changed their minds about the work options<br />
available to them. It will also require better competency or talent inventories<br />
to find the competencies that retirees possess and tap them creatively<br />
on short notice. It will also require new management approaches, since retirees<br />
may have lower tolerance for arbitrary management practices than others.<br />
Deciding What to Do<br />
There is no foolproof way to integrate SP&M with alternatives to replacement<br />
from within. The important point is to make sure that alternatives to simple<br />
replacement are considered. Often, that responsibility will rest with HR generalists,<br />
HRD specialists, SP&M coordinators, and even CEOs or others who bear<br />
major responsibility for succession planning and management. A good strategy<br />
is to raise the issue at two different—and opportune—times: (1) during review<br />
meetings to identify successors; and (2) on the occasions when a vacancy occurs<br />
in a key position and permission is sought to fill it.<br />
During the review process, ask operating managers how they plan to meet<br />
replacement needs. At that time, raise the alternatives, and ask them to consider<br />
other possibilities as well. Be sure that only key positions are being considered<br />
in succession planning and management efforts in order to focus<br />
attention on areas of critical need.<br />
When a vacancy occurs—or is about to occur—in a key position, raise the
Exhibit 11-3. A Tool for Contemplating Ten Ways to Tap the Retiree Base<br />
Directions: Use this worksheet to guide your thinking on how the retiree base of your organization might be more effectively<br />
tapped to shore up talent needs. In any given situation when your organization is facing a talent need or shortage wrought by<br />
a retirement, consider each of the strategies listed below. For each way to use the retiree base to solve the problem, indicate<br />
whether it might be appropriate to that situation by checking yes, no, or maybe. Make remarks in the right column about<br />
whether two or more alternatives might be combined.<br />
Ways of Tapping the Retiree Base<br />
to Meet a Talent Need<br />
Could the work be accomplished by:<br />
Is This Approach<br />
Appropriate to the<br />
Situation?<br />
Yes<br />
<br />
No<br />
<br />
Maybe<br />
<br />
1 Calling in retirees for full-time employment? <br />
2 Calling in retirees for ‘‘permanent part-time’’ employment? <br />
3 Calling retirees ‘‘as needed’’? <br />
4 Giving the retirees virtual work to do? <br />
5 Giving retirees cell phones and putting them ‘‘on call’’ to<br />
coach their replacements when needed?<br />
<br />
6 Hiring retirees as coaches for those who are really not ready<br />
for the promotions they are given?<br />
<br />
7 Giving retirees computers and having them do virtual<br />
coaching by ‘‘instant messaging’’ as needed?<br />
<br />
8 Tapping retirees as onsite or online trainers? <br />
9 Hiring retirees to document procedures or other information<br />
that they know?<br />
<br />
10 Hiring retirees as consultants? <br />
11 Other (Specify: ) <br />
Remarks: Can Two or<br />
More Alternatives Be<br />
Combined?
Assessing Alternatives to Internal Development<br />
271<br />
issue again. Ask operating managers what alternatives to simple replacement<br />
they have considered. Briefly review some of them to ensure that succession<br />
is driven by work requirements and not by custom, resistance to change, or<br />
other issues that may be needlessly costly or inefficient.<br />
Summary<br />
This chapter has reviewed alternatives to traditional replacement from within.<br />
Alternatives may be used when any one or all of the following questions may<br />
be answered yes:<br />
1. Is the key position no longer necessary?<br />
2. Can a key position be rendered unnecessary by finding new ways to<br />
achieve comparable results?<br />
3. Can a key position be rendered unnecessary by redistributing the duties<br />
to a team in the same part of the organization?<br />
4. Can a key position be rendered unnecessary by reallocating the duties<br />
to other parts of the organization?<br />
5. Can a key position be rendered unnecessary by outsourcing the work?<br />
6. Can a key position be rendered unnecessary by using flexible staffing<br />
approaches?<br />
7. Can combining the approaches listed above obviate the need for a replacement<br />
in a key position?<br />
8. Can the retiree base be tapped for a qualified replacement?<br />
Pose these questions during review meetings to identify successors and on the<br />
occasions when a vacancy occurs in a key position. Be sure that key positions<br />
are filled only when absolutely necessary to achieve essential work requirements<br />
and to meet the organization’s real strategic objectives.
C H A P T E R 1 2<br />
USING TECHNOLOGY TO SUPPORT<br />
SUCCESSION PLANNING AND<br />
MANAGEMENT PROGRAMS<br />
The Internet and the World Wide Web have profoundly influenced the world.<br />
That fact is as true for succession planning and management (SP&M) practices<br />
as for anything else. Many organizations are in a competitive race to enter<br />
e-commerce, or to consolidate the competitive edge they are already acquiring<br />
from it.<br />
Online and high-tech approaches have also had a dramatic impact on succession<br />
planning and management practices. This chapter focuses attention<br />
on four key questions: (1) How are online and high-tech methods defined? (2)<br />
In what areas of succession planning and management can online and hightech<br />
methods be applied? (3) How are online and high-tech applications used?<br />
and (4) What specialized competencies are required by succession planning<br />
coordinators to use these applications?<br />
Defining Online and High-Tech Methods<br />
An online method relies on the Internet, a company or organizational intranet,<br />
an extranet, or the World Wide Web. Examples of online methods range from<br />
traditional print-based electronic mail to Web-based multimedia productions<br />
that integrate print, sound effects, music, animation, still graphics, and video.<br />
A high-tech method is anything other than an online method that substitutes<br />
technology for face-to-face interpersonal interaction. Examples of high-tech<br />
methods include videoconferencing or audio-teleconferencing.<br />
One way to conceptualize online and high-tech methods is to think of<br />
them as existing on one continuum ranging from simple to complex and on a<br />
second continuum ranging from noninteractive to fully interactive, as depicted<br />
in Exhibit 12-1. Simple methods are usually easy to design and inexpensive to<br />
use. Complex methods are usually difficult to design and are often expensive<br />
to design and use. Noninteractive methods do not involve people in real time,<br />
while interactive methods require people to participate actively. These distinctions<br />
are important when planning and budgeting the use of online and hightech<br />
methods. The most complex or interactive methods often necessitate spe-<br />
272
273 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 12-1. Continua of Online and High-Tech Approaches<br />
Simple<br />
Complex<br />
Noninteractive Electronic mail Online help with forms<br />
Web-based documents Policies, procedures, in-<br />
Audiotape-based train- structions, forms, or ining<br />
or instructions<br />
struments distributed by<br />
Videotape-based train- disk or CD-ROM<br />
ing or instructions<br />
Interactive Print surveys sent elec- Groupware<br />
tronically Interactive television<br />
Print surveys completed Multimedia training<br />
over the Web<br />
material<br />
PC-based Virtual reality applicaaudioteleconference<br />
tions<br />
PC-based videoteleconference<br />
cial skills in the design process and are more expensive and time-consuming<br />
to plan and use.<br />
The software to support succession planning and management is becoming<br />
increasingly sophisticated. Nontechnical users who are tasked with sourcing<br />
the right technology to support the organization’s operations in this area<br />
face a daunting task. And the information is not necessarily easy to come by.<br />
Much time can be spent just trying to find what software is available and compare<br />
their features. A good approach is to clarify what your organization plans<br />
to do with the software and then find a product that will best meet the needs.<br />
Use the rating sheet in Exhibit 12-2 as a starting point to define what is needed.<br />
I have found that some popular vendors on the market are the following<br />
(this is not a product endorsement):<br />
▲ Talent Management by AIM (see www.aimworld.com/AIMtalent.html)<br />
▲ Succession by Business Decisions, Inc. (see www.businessdecisions<br />
.com/)<br />
▲ HRSoft by Executrack (see www.hrsoft.com/)<br />
▲ Click XG Workforce by PeopleClik (see www.peopleclick.com/ )<br />
▲ Succession Pulse by Pilat (see www.pilat-hr.com/solutions/succession<br />
.html)<br />
▲ Workforce Performance Management by Success Factors (see www.suc<br />
cessfactors.com/index.php)<br />
▲ Human Capital Management by Softscape (see www.softscape.com/us/<br />
home.htm)<br />
(text continues on page 277)
Exhibit 12-2. A Starting Point for a Rating Sheet to Assess Vendors for Succession Planning and Management<br />
Software<br />
Directions: Use this rating sheet as a starting point to develop your own rating sheet to assess various software vendors for<br />
succession planning and management software. Note that there are three sections. The first section asks you to rate the software<br />
product. The second section asks you to rate the vendor. The third section allows you to provide any additional comments you<br />
wish to provide. For each criterion listed in the left column below, gather sufficient evidence to rate the vendor in the center<br />
column according to the following ratings: 0 Not Applicable; 1 Not Acceptable; 2 Somewhat Unacceptable; 3 <br />
Somewhat Acceptable; 4 Fully Acceptable. In the right column, provide notes to explain your scores. If you rate the vendor<br />
as anything less than fully acceptable, provide a justification in the right column.<br />
Is the software:<br />
1. Compatible with other<br />
software that your<br />
company uses—or can it<br />
be made compatible with<br />
relative ease?<br />
N/A<br />
Not<br />
Acceptable<br />
Part I: The Software<br />
Somewhat<br />
Unacceptable<br />
Somewhat<br />
Acceptable<br />
Fully<br />
Acceptable<br />
0 1 2 3 4<br />
0 1 2 3 4<br />
2. Simple to use? 0 1 2 3 4<br />
3. Browser-based? 0 1 2 3 4<br />
4. Capable of giving different<br />
levels of access to different<br />
types of users?<br />
0 1 2 3 4<br />
Justification
5. Able to provide the kind of<br />
reports that you or others<br />
will want?<br />
6. Capable of being<br />
customized for individuals,<br />
such as your CEO?<br />
7. Capable of providing the<br />
level of security that you<br />
want?<br />
0 1 2 3 4<br />
0 1 2 3 4<br />
0 1 2 3 4<br />
8. Competitively priced? 0 1 2 3 4<br />
9. Priced with upgrades? 0 1 2 3 4<br />
10. Well-matched to the needs<br />
your organization plans to<br />
meet with it?<br />
0 1 2 3 4<br />
Does the vendor:<br />
1. Have a good track record<br />
with other clients?<br />
2. Provide the support your<br />
organization will need?<br />
Part II: The Vendor<br />
0 1 2 3 4<br />
0 1 2 3 4<br />
3. Respond to requests? 0 1 2 3 4<br />
(continues)
Exhibit 12-2. (continued)<br />
4. Know enough about succession<br />
planning and<br />
management to be<br />
helpful?<br />
5. Provide the level of support<br />
your organization needs/<br />
wants?<br />
6. Provide a range of solutions<br />
and avoid a ‘‘onesize-fits-all’’<br />
approach?<br />
7. Provide training you or<br />
others might need?<br />
Now add up the scores.<br />
The higher the score, the more<br />
acceptable it is:<br />
N/A<br />
Not<br />
Acceptable<br />
Somewhat<br />
Unacceptable<br />
Somewhat<br />
Acceptable<br />
Fully<br />
Acceptable<br />
0 1 2 3 4<br />
0 1 2 3 4<br />
0 1 2 3 4<br />
0 1 2 3 4<br />
Total<br />
Part III: Your Additional Comments<br />
Justification
Using Technology to Support Succession Planning and Management Programs<br />
277<br />
For additional help, check out the current Buyer’s Guide to Talent Management<br />
Systems, which could be found (at the time this book goes to press) at<br />
http://shop.hr.com/products/ICGReport_TalentMS.asp. Of course, many more<br />
software packages are out there.<br />
Where to Apply Technology Methods<br />
To state the issue simply, online and high-tech methods can be applied to<br />
almost any area of an SP&M program. Such methods may be used in: (1) formulating<br />
SP&M program policy, procedures, and action plans; (2) assessing<br />
present work or competency requirements; (3) evaluating current employee<br />
performance; (4) determining future work or competency requirements; (5)<br />
assessing potential; (6) closing developmental gaps; (7) maintaining talent inventories;<br />
and (8) evaluating the program. Of course, online and high-tech<br />
methods can also be used for communicating details of a succession program<br />
and providing training and skill building, or even real-time coaching. They<br />
substitute virtual interaction for face-to-face interaction. The maddening thing<br />
about them is that they date so quickly. Almost nothing today changes as fast<br />
as technological innovations.<br />
How to Evaluate and Use Technology Applications<br />
To use online and high-tech applications in SP&M programs, you can use a<br />
hierarchy of applications, such as presented in Exhibit 12-3. The subsections<br />
below first describe the hierarchy and then provide specifics about how to<br />
apply online and high-tech methods to an SP&M program.<br />
A Hierarchy of Applications<br />
Researching secondary information is the first, and lowest, level of online and<br />
high-tech applications for SP&M. You can use the Web—or your organization’s<br />
human resource information systems (HRIS)—to collect and analyze information<br />
that is readily available. Use secondary information of this kind to look for<br />
articles, books, or Web sites about best practices and research on succession<br />
issues. Surf the Web, using search engines or metasearch engines (see a full<br />
list of metasearch engines at www.searchiq.com/directory/multi.htm), around<br />
key words or phrases linked to succession planning. Conduct analyses of your<br />
organization’s workforce using your organizational HR information system<br />
about such important issues as the ages of your workers at various levels (executive,<br />
managerial, professional, and technical) and their projected retirement<br />
ages, their racial or gender composition, performance ratings, turnover rates,<br />
absenteeism, and other information. Try to use this information to answer<br />
such questions as these:
278 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 12-3. A Hierarchy of Online and High-Tech Applications for<br />
Succession Planning and Management<br />
Interactive<br />
and<br />
Multimedia<br />
Distribution<br />
and Delivery<br />
Policy Formulation<br />
Original Data Collection for<br />
Policy Formulation<br />
Benchmarking/Comparison-Making<br />
with Other Organizations<br />
Document Distribution<br />
Document Storage and Retrieval<br />
Researching Secondary Information<br />
▲ How many people exist at each level of the organization and in each<br />
important occupational or hierarchical grouping?<br />
▲ When are those people expected to retire?<br />
▲ What percentage of those people fall into protected labor classes?<br />
▲ What is the turnover rate by level?<br />
▲ What is the critical turnover rate by level?<br />
▲ How well are people performing?<br />
▲ How many potential candidates for succession exist at each level, and<br />
how many potential candidates may be needed to exist to support the<br />
organization’s expected growth?
Using Technology to Support Succession Planning and Management Programs<br />
279<br />
In each case, these questions involve analysis of existing information. This is<br />
the lowest level of the hierarchy of applications, and it is also the easiest to<br />
use, provided that the necessary records exist and can be manipulated in ways<br />
permitting analysis.<br />
Document storage and retrieval is the second level of the hierarchy. Online<br />
methods are often useful for storing and retrieving documents important<br />
to SP&M such as job descriptions, competency models, value statements, performance<br />
appraisal forms, potential assessments, and replacement charts. As<br />
organizations move toward realizing the promise of the paperless office, document<br />
storage and retrieval becomes more important. Document imaging permits<br />
hard copy to be scanned and kept electronically.<br />
Document distribution is the third level of the hierarchy. This level adds<br />
interactivity and permits SP&M coordinators to place documents online. For<br />
instance, from company Web sites, users can download documents such as<br />
job descriptions, job analysis questionnaires or interview guides, competency<br />
models, performance appraisal forms, individual potential assessment forms,<br />
individual development plans, and even training for advancement. Additionally,<br />
users may even complete the forms online and send them to SP&M coordinators<br />
so that the transactions are paperless. Data can then be analyzed<br />
directly online. (That also improves data security.)<br />
Benchmarking is the fourth level of the hierarchy. While the third level<br />
permits document distribution and analysis within an organization, benchmarking<br />
permits information sharing among organizations. For instance, a<br />
succession planning coordinator in one organization can send electronic questionnaires—or<br />
even sample documents, such as succession planning policies—to<br />
consultants, college professors, or SP&M coordinators in other<br />
organizations. That permits easy comparisons and discussions of important<br />
issues across organizations.<br />
Original data collection for policy formulation is the fifth level of the<br />
hierarchy. Using online survey software, for instance, SP&M coordinators can<br />
poll managers, workers, and other stakeholders about emerging problems that<br />
affect succession planning. For instance, an attitude survey could be conducted<br />
periodically online to gather information about employee job satisfaction<br />
(which can affect or even help to predict turnover rates), attitudes about<br />
existing succession practices, and other relevant issues. This information is<br />
valuable in formulating new policies or revising existing policies.<br />
Policy formulation is the sixth level of the hierarchy. Decision-makers can<br />
use groupware—software that links individuals virtually for decision making<br />
in real time—to formulate new policies on issues affecting SP&M. For instance,<br />
during policy formulation, decision-makers can work together on virtual teams<br />
to establish a new or revised succession policy, devise a competency model,<br />
prepare a job description, plan training to close developmental gaps, carry out<br />
potential assessment or performance appraisal, or offer confidential advice on<br />
a difficult succession issue.
Using Technology to Support Succession Planning and Management Programs<br />
280<br />
Interactive and multimedia distribution and delivery is the seventh and<br />
highest level of the hierarchy. This is usually the most complex, and often<br />
the most expensive, to create. It includes multimedia training prepared and<br />
delivered over the Web or over a company intranet. It also includes CD-ROMbased<br />
training designed to build competencies to prepare people for advancement<br />
and other high-tech methods, such as desktop video, that can link decision-makers<br />
in discussions about individual development or about SP&M<br />
policy issues.<br />
Use the worksheet in Exhibit 12-4 to brainstorm when and how to use<br />
online and high-tech methods according to the hierarchy of applications described<br />
in this section.<br />
Formulating Policy, Procedures, and Action Plans<br />
Recall from earlier in this book that an important starting point for any SP&M<br />
program is a policy to guide the program, as well as procedures and action<br />
plans to implement the program. Lacking those, decision-makers will probably<br />
not share the same views about what results are to be achieved, how they are<br />
to be achieved, or even why the program exists. The process of formulating<br />
SP&M program policy, procedures, and action plans is important because the<br />
process is key to gaining stakeholder ownership and understanding.<br />
Online and high-tech methods can be helpful in formulating policy, procedures,<br />
and action plans. It is not always necessary, of course, to formulate<br />
policies in face-to-face meetings. Some (and on occasion all) of the work can<br />
be done online, and some work can be done by virtual teams when decisionmakers<br />
are geographically scattered.<br />
Groupware can bring stakeholders together to make a decision in real<br />
time. (For an example of groupware that can be downloaded for free, see<br />
http://teamwave.com/.) Some people can be in the United States; some can be<br />
in Europe; some can be in South America; some can be in Australia; and some<br />
can be in Asia. But they all assemble online at the same time and focus attention<br />
on discussing and reaching conclusions about key issues.<br />
High-tech methods can also be used. Conference calls are probably the<br />
simplest of these methods. Users discuss succession policies, procedures, and<br />
action plans over the phone. To hold down costs, such calls can be made over<br />
personal computers by using software such as netphone (see www.sonomasystems.com/news/netphone.htm).<br />
With the advent of small and inexpensive video cameras that can be<br />
attached to the top of personal computers or even to laptops, and the easy<br />
availability of software to link those cameras (such as Microsoft’s Netmeeting,<br />
available for download at www.microsoft.com/windows/netmeeting/), decision-makers<br />
can meet from their desktops from almost anywhere. Netmeeting<br />
permits real-time video and audioconferencing, graphics collaboration through<br />
a whiteboard feature, text conversations through a chat feature, an Internet<br />
directory for reaching others, a file transfer feature to permit document swap-<br />
(text continues on page 283)
Exhibit 12-4. A Worksheet for Brainstorming When and How to Use Online and High-Tech Methods<br />
Directions: Use this worksheet to help you brainstorm when and how to use various online and high-tech methods in your<br />
organization’s SP&M program. For each area of SP&M listed in the left column below, jot down ideas under the appropriate<br />
headers in the right column on ways that your organization may appropriately and effectively use the online and high-tech<br />
approaches described. Add paper if necessary.<br />
Area of Succession<br />
Planning and<br />
Management<br />
1 Formulating SP&M<br />
Policy<br />
Researching<br />
Secondary<br />
Information<br />
Notes on When and How to Use Online and High-Tech Approaches<br />
Document<br />
Storage and<br />
Retrieval<br />
Document<br />
Distribution<br />
Benchmarking<br />
Original<br />
Data<br />
Collection for<br />
Policy<br />
Formulation<br />
Policy<br />
Formulation<br />
Interactive and<br />
Multimedia<br />
Distribution<br />
and<br />
Delivery<br />
2 Assessing Present<br />
Work/people Requirements<br />
3 Evaluating Current<br />
Employee Performance<br />
(continues)
Exhibit 12-4. (continued)<br />
4 Determining Future<br />
Work/People Requirements<br />
5 Assessing Potential<br />
6 Closing Developmental<br />
Gaps<br />
7 Maintaining Talent<br />
Inventories<br />
8 Evaluating the Program<br />
9 Others (list below)
Using Technology to Support Succession Planning and Management Programs<br />
283<br />
ping in real time, program sharing, and many other features. In short, Netmeeting<br />
provides most of the advantages of a face-to-face meeting and some<br />
that cannot be obtained in such a meeting.<br />
Experienced videoconferencing users, however, have learned that it is advisable<br />
to test the equipment and software before the scheduled meeting time<br />
to make sure that it works. They have also learned that a meeting agenda<br />
should be sent out beforehand with short questions intended to keep the<br />
meeting focused. Meetings should be kept short, since participants find that<br />
watching compressed video can be tedious. The number of callers should be<br />
kept to a minimum, since multiple sites can be difficult to manage in videoconferencing.<br />
What are some tips to make these meetings most effective? Here are a few:<br />
▲ Make sure the time schedules are clear, especially when callers are located<br />
in different time zones.<br />
▲ Open all meetings with introductions so that everyone knows who is<br />
there, why they are there, and what they can contribute.<br />
▲ Keep the structure of the meeting simple. If difficult decisions are to be<br />
made, provide material in advance and ask people to review it before<br />
the meeting.<br />
▲ Send out, by e-mail, sample policies, procedures, and action plans governing<br />
succession planning and invite participants to focus their attention<br />
on them. Sample documents tend to focus attention faster.<br />
▲ Schedule follow-up discussions to resolve differences of opinion rather<br />
than trying to iron them out in a videoconference.<br />
▲ Make sure everyone has contact information for everyone else, such as<br />
e-mail addresses, so that people can discuss important issues of interest<br />
among themselves later.<br />
Assessing Present Work Requirements<br />
Assessing present work requirements is a second important component of any<br />
effective SP&M program. People cannot prepare for the future if they do not<br />
know what is expected of them at present.<br />
Traditionally, present work requirements have been assessed in several<br />
ways. One way is for the supervisor to write a job description. Another way is<br />
for a specialist in the human resources department to interview one or more<br />
job incumbents and their supervisors, draft a job description, and then ask for<br />
a review by those interviewed. Online and high-tech approaches have added<br />
new dimensions to this process. It is now possible to send worksheets or questionnaires<br />
for preparing job descriptions as attached documents from one location.<br />
Supervisors or HR specialists can then draft job descriptions and send<br />
them around electronically for supervisors or HR specialists and job incum-
284 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
bents to review and modify, make corrections, and reach agreement virtually.<br />
Alternatively, audioconferences or videoconferences can be substituted for<br />
face-to-face meetings.<br />
Additionally, many resources now exist to help the harried HR specialist or<br />
supervisor write job descriptions. For instance, supervisors or HR specialists<br />
can invest in software such as Descriptions Now! (see www.gneil.com/item<br />
.html?s-5040&i-21&pos-2&sessionid-S9nac7q435), which provides draft language<br />
for job descriptions and helps the user draft newspaper advertisements<br />
to recruit applicants. As an alternative, supervisors or HR specialists can find<br />
thousands of free job descriptions on the Web as a starting point for discussion<br />
and for ideas in preparing them. As just one example, visit www.stepfour.com/<br />
jobs/ to find 12,741 job descriptions from the Dictionary of Occupational<br />
Titles arranged in alphabetical order. Also visit ONet, which is the electronic<br />
system that is replacing The Dictionary of Occupational Titles. Real-time training<br />
on the Web is also available to help supervisors or workers learn how to<br />
write job descriptions. (See www.siu.edu/ humres/doitright/descrip.html.)<br />
The important point to remember is that no online substitute exists for<br />
reaching agreement among supervisors, incumbents, and HR specialists on<br />
what are the current work requirements, why they are necessary for success in<br />
the job, and how they can be met. In other words, online and high-tech approaches<br />
should be used as supplements, not as substitutes, for traditional job<br />
analysis, competency identification, and other approaches to assessing present<br />
work requirements.<br />
Evaluating Current Employee Performance<br />
A third important component of any effective succession planning program is<br />
some means of evaluating current employee performance. As noted earlier in<br />
the book, people are rarely considered for promotion—or any other advancement<br />
opportunity, for that matter—if they are not performing well in their<br />
current jobs. Of course, a good performance appraisal system should measure<br />
individual performance as it relates to work requirements, standards, performance<br />
targets or expectations, or behavioral indicators tied to job competencies.<br />
Traditionally, the process of evaluating current employee performance has<br />
been handled with paper forms that are completed and then followed up on<br />
by means of face-to-face interviews between workers and their immediate supervisors.<br />
Often, the human resources department is responsible for establishing<br />
the process by which individual performance is appraised. The information<br />
gathered in this process is, in turn, used in making wage or salary determinations,<br />
identifying training or individual development needs, and planning for<br />
future improvement.<br />
Online and high-tech approaches have added new dimensions to this process.<br />
It is now possible to solicit, through e-mail or Web sites, opinions of other<br />
people about an individual’s performance. For instance, a performance appraisal<br />
form may be sent for input to (among others) an individual’s orga-
Using Technology to Support Succession Planning and Management Programs<br />
285<br />
nizational superiors, peers, subordinates, customers, company suppliers, and<br />
company distributors.<br />
Additionally, software resources now exist that can help supervisors write<br />
performance appraisals. For instance, supervisors or HR specialists can invest<br />
in software such as Performance Now! (available at the time this book goes<br />
to press at www.gneil.com/item.html?s-5040&i-20&pos-8&sessionid-S9nac7q-<br />
435) that supplies draft language for employee performance appraisals and<br />
can offer legal advice about what is and is not advisable to put in writing on<br />
appraisal forms. Free resources can also be found on the Web to support the<br />
formulation of policies on employee performance appraisal (such as, for instance,<br />
sample policies available at the time this book goes to press at http://<br />
ukcc.uky.edu/hrinfo/hrp/hrp061.txt, www.tempe.gov/hradmin/docs/Perf--Appr--<br />
Inst.htm, and www.infosys.ilstu.edu/ohr/PAexempt.html); complete appraisal<br />
systems for a fee (available when this book goes to press at www.performanceappraisal.com/manual/download.htm);<br />
and sample forms (available when this<br />
book goes to press at http://fcn.state.fl.us/dms/hrm/forms/forms.html and http://<br />
ohioline.ag.ohio-state.edu/hrm-fact/0007.html).<br />
Using online and high-tech methods with employee performance appraisal<br />
can be beneficial. However, SP&M coordinators should always remember that<br />
every useful performance appraisal system comes at a price. This means that,<br />
while online aids can be helpful and can offer valuable support, no substitute<br />
exists for the laborious process of establishing and measuring the unique performance<br />
requirements of people in one organization.<br />
Determining Future Work Requirements<br />
Forecasting or planning for future work requirements is a fourth important<br />
component of any effective SP&M program. After all, it is no more likely that<br />
work requirements will remain static than it is that the organization itself will<br />
remain static. Organizational needs change, and so do work requirements. It<br />
is therefore important to engage stakeholders and decision-makers in planning<br />
for the expected changes that may occur in the organization and in its<br />
work requirements. That is essential if individuals are to be prepared to meet<br />
those requirements in the future. Few organizations regularly and systematically<br />
forecast future work or competency requirements. However, the need to<br />
do that is growing. It is simply not possible to prepare people if future work<br />
requirements remain unknown.<br />
Online and high-tech approaches have, however, provided new approaches<br />
to job forecasting, scenario planning, and future-oriented competency<br />
modeling. Job forecasting estimates future job requirements. It may<br />
address such questions as these:<br />
▲ What will be the future purpose of the job? How will that be different<br />
from the job’s present purpose?
286 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
▲ What are the expected work duties or responsibilities of the job in the<br />
future, and how are they expected to change?<br />
▲ What knowledge, skills, or attitudes are needed by individuals in the<br />
future to qualify for those jobs?<br />
▲ How important will be the various duties or responsibilities of those<br />
jobs, and which ones will be considered most critical to success in the<br />
future?<br />
Answering such questions is the process of job forecasting.<br />
Scenario planning identifies possible alternative futures. Instead of assuming<br />
that jobs or work will change in one way, as job forecasting does, scenario<br />
planning offers probabilities. Scenarios resemble written stories about the future.<br />
They help people plan by giving them clear descriptions of what the<br />
future may look like, or different pictures of various futures. Groupware, described<br />
in an earlier section, can be useful as an online approach to conducting<br />
job scenario planning. It is thus possible to prepare different versions of<br />
job descriptions for the future and then use those to stimulate planning among<br />
job incumbents and their immediate organizational supervisors.<br />
Another way to carry out scenario planning is to rely on software or Web<br />
sites that make it relatively easier than it might otherwise be. One resource for<br />
conducting scenario planning is the Web site of the Global Business Network<br />
(found at the time this book goes to press at www.gbn.org/public/help/<br />
map.htm). This Web site offers member services for conducting scenario planning.<br />
While the key emphasis in most scenario planning is business planning<br />
and financial analysis, it is possible to find help in doing job scenario planning.<br />
Future-oriented competency modeling projects the future competencies<br />
required by departments or job groups. Its focus, unlike traditional competency<br />
modeling, is on what will set exemplary performers apart from fully<br />
successful performers in the future. It is therefore future-oriented and is sometimes<br />
based on trends.<br />
Many resources exist to help SP&M coordinators conduct future-oriented<br />
competency modeling. For instance, you can find a list of competencies<br />
needed in businesses in the future by consulting http://cithr.cit.cornell.edu/<br />
FutComp.html, or a compelling article about organizational core competencies<br />
of the future at www.bah.de/viewpoints/insights/cmt_core_comp.html.<br />
You can also purchase software for competency modeling, such as The Competence<br />
Expert (described at the time this book goes to press at www.kravetz<br />
.com/compexpert.html) or the Competency Coach for Windows (described at<br />
www.coopercomm.com/ccchfact.htm) One other source is Kenneth Carlton<br />
Cooper’s Effective Competency Modeling & Reporting (AMACOM, 2000),<br />
which includes a working model on CD-ROM of Competency Coach for Windows.
Using Technology to Support Succession Planning and Management Programs<br />
287<br />
Assessing Potential<br />
A fifth important component of any effective succession planning program is<br />
some means by which to assess individual potential for the future. What is the<br />
individual’s potential for advancement to higher levels of responsibility, or to<br />
higher levels of technical expertise in his or her specialization? That is the<br />
question answered by this component.<br />
One approach that is increasingly used for potential assessment is fullcircle,<br />
multirater feedback. Described in an earlier chapter, this involves assessing<br />
an individual’s potential based on the perceptions of those surrounding<br />
him or her in the organization. It is important to remember, however, that<br />
potential assessment should be conducted in the context of work requirements.<br />
In other words, an individual should not just be appraised for his or<br />
her current abilities. Instead, he or she should be assessed for meeting future<br />
job requirements or future competencies.<br />
Both PC-usable software and Web-based full-circle, multirater assessment<br />
instruments are widely available. To find many of them, it is only necessary to<br />
type ‘‘360 assessment’’ into a search engine on the Web. But a word of caution<br />
is again in order: most full-circle, multirater assessment instruments have been<br />
based on competency models from other organizations. That means they are<br />
not necessarily useful, applicable, or even appropriate in all corporate cultures.<br />
To be most effective, a company-specific competency model must be<br />
prepared for every department or every job category (such as supervisor, manager,<br />
and executive). Potential assessment is useful only when done in this<br />
way. Indeed, rating individual potential on competencies that are not company-specific<br />
can lead to major mistakes and miscalculations. Hence, while<br />
online and high-tech approaches can be useful, they should be used appropriately<br />
to measure individual potential within a unique corporate culture.<br />
Closing Developmental Gaps<br />
Closing developmental gaps is a sixth important component of any effective<br />
SP&M program. This component leads to an action plan to help individuals<br />
narrow the gap between what they can do now and what they need to do<br />
to advance. Individual development planning is the process by which this is<br />
accomplished.<br />
Although few software packages exist to support the individual development<br />
planning process—in fact, I could find none after an extensive search on<br />
the Web—many resources can be found on the Web to assist with the process.<br />
For instance, sample forms can be found at the time this book goes to press at<br />
www.johnco.cc.ks.us/acad/sd/sdidp.htm, http://www.grc.nasa.gov/WWW/OHR/<br />
next6.htm, and www.hr.lanl.gov/CareerDevelopment/IDPs.htm. Sample policies<br />
guiding the use of an individual development planning (IDP) form can<br />
also be found at the time this book goes to press at www.lerc.nasa.gov/WWW/
288 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
ODT/idp.htm and http://ohr.gsfc.nasa.gov/DevGuide/idp.htm, and a sample<br />
training plan about individual development planning can be found at http://<br />
www.doleta.gov/ohrw2w/volume1/v1md11.htm.<br />
Maintaining Talent Inventories<br />
A seventh important component of any effective SP&M program is some means<br />
by which to maintain talent or skill inventories. How can the organization keep<br />
track of the knowledge, skills, and competencies of existing staff? That is the<br />
question answered by talent or skill inventories. Organizations possessing no<br />
means by which to inventory talent will have a difficult time locating qualified<br />
people in the organization when vacancies occur in key positions or when<br />
emergencies arise. Every organization should have some way to inventory its<br />
talent.<br />
Succession planning and management inventories may take two forms:<br />
manual or automated. A manual system relies on paper files. It consists of<br />
individual personnel files or specialized records, assembled especially for<br />
SP&M, that take the form of a succession planning and management notebook<br />
or Rolodex file. These files contain information relevant to making succession<br />
decisions, such as:<br />
▲ Descriptions of individual position duties or competencies (for instance,<br />
a current position description)<br />
▲ Individual employee performance appraisals<br />
▲ Statements of individual career goals or career plans<br />
▲ Summaries of individual qualifications (for instance, educational and<br />
training records)<br />
▲ Summaries of individual skills (for instance, a personal skill inventory<br />
that details previous work experience and languages known) 1<br />
Of course, other information may be added, such as individual potential assessment<br />
forms and replacement planning charts.<br />
A manual inventory will suffice for a small organization having neither specialized<br />
expertise available to oversee SP&M activities nor resources available<br />
for automated systems. A chief advantage is that most of the information is<br />
filed in personnel files anyway, so no monumental effort is necessary to compile<br />
information on individual employees. However, a manual inventory can<br />
lead to difficulties in handling, storing, cross-referencing, and maintaining security<br />
over numerous (and sometimes lengthy) forms. Even in a small organization,<br />
these disadvantages can present formidable problems.<br />
Even small organizations, however, can now gain access to relatively inexpensive<br />
PC-based software that places much information at a manager’s (or HR<br />
specialist’s) fingertips. One example is People Manager (see www.gneil.com/<br />
item.html?s-5040&i-878&pos-5&sessionid-S9nac7q-43 5). A second is People-<br />
Trak (see www.gneil.com/item.html?s-5040&i-695&pos-7&sessionid-S9nac7q-
Using Technology to Support Succession Planning and Management Programs<br />
289<br />
43 5). A third is !Trak-IT HR (see www.gneil.com/item.html?s-5040&i-591&pos-<br />
17&sessionid-S9nac7q-4 35). Each software package permits some limited talent<br />
inventorying that can be useful even in small businesses.<br />
Automated inventories used in SP&M take any one of three typical forms:<br />
(1) simple word processing files; (2) tailored SP&M software; or (3) SP&M<br />
software integrated with other personnel records. Simple word processing<br />
files are the next step beyond paper files. Special forms (templates) are created<br />
for SP&M using a popular word processing program, such as Microsoft Word.<br />
Blank forms are placed on disk or CD-ROM. Managers are asked to complete<br />
the forms on disk and return them, physically or electronically, to a central<br />
location. This approach reduces paper flow and makes handling, storing, and<br />
security easier to manage than is possible with paper records. Unfortunately,<br />
SP&M information that is inventoried in this manner will usually be troublesome<br />
to cross-reference.<br />
Tailored SP&M software is becoming more common. Much of it is now<br />
Web-based or suitable for Web applications. Succession planning and management<br />
coordinators should review several such packages before purchasing<br />
one. The chief advantage of this software is that it is designed specifically for<br />
SP&M. Indeed, it can give decision-makers good ideas about desirable features<br />
to change, add to, or subtract from the SP&M program. Handling, storing,<br />
cross-referencing, and maintaining security over much information is greatly<br />
simplified. While software prices were relatively high even a few years ago,<br />
they are now affordable to most organizations employing fifty or more people.<br />
The only major disadvantage of this software is that it can present temptations<br />
to modify organization needs to satisfy software demands. In other<br />
words, software may not provide sufficient flexibility to tailor SP&M forms and<br />
procedures to meet the unique needs of one organization. That can be a major<br />
drawback. For this reason, SP&M software should be carefully reviewed, in<br />
cooperation with the vendor, prior to purchase. Of course, it may be possible<br />
for the vendor to modify the software to meet organizational needs at a modest<br />
cost.<br />
Succession planning and management software may also be integrated<br />
with other personnel systems. In this case—and some large organizations attempt<br />
to keep all data in one place, usually in a mainframe system, in an effort<br />
to economize the problems inherent in multiple-source data entry and manipulation—SP&M<br />
information is included with payroll, training, and other records.<br />
Unfortunately, such software is usually of limited value for SP&M<br />
applications. To be tailored to a large organization’s uses, such software may<br />
have to undergo lengthy and large-scale programming projects. A typical—and<br />
major—problem with such mainframe HRIS programs is that they provide insufficient<br />
storage space for detailed, individualized recordkeeping tailored to<br />
unique organizational procedures. When that is the case, it may be easier to<br />
use a personal-computer-based system—or else mount a massive, expensive,<br />
and probably quickly dated programming effort to modify a mainframe program.
290 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Evaluating the Program<br />
An eighth and final important component of any effective SP&M program is<br />
some means by which to evaluate the SP&M program and each of its components.<br />
This ensures that continuous program improvement can be made. At<br />
this writing, however, no online software currently exists that is specifically<br />
tailored to evaluating SP&M programs. Thus SP&M coordinators must prepare<br />
their own online and high-tech approaches if they wish to use them for evaluating<br />
their programs.<br />
Of course, it should be relatively simple to prepare online questionnaires<br />
or other surveys to gather information about the relative value of SP&M programs.<br />
Typical evaluation issues that should be addressed will be discussed in<br />
the next chapter. Using online methods, however, may increase the speed and<br />
ease of response and facilitate data analysis.<br />
Other Applications<br />
There are other online and high-tech applications for SP&M. For instance, you<br />
can use software to prepare replacement charts. Best known, and perhaps<br />
least expensive, for doing that is probably OrgPlus (found at the time this book<br />
goes to press at www.gneil.com/item.html?s-5041&i-601&pos-6&sessionid-S9<br />
nac7q435).<br />
Software can also be purchased to facilitate preparation of forms for succession<br />
planning (such as Formtool, described at www.cdromshop.com/<br />
cdshop/desc/p.730526347135.html) or online training support to build competencies.<br />
Many so-called e-learning sites exist on the Web, and they can be<br />
tied to the competencies that individuals need to build to qualify for advancement<br />
opportunities.<br />
What Specialized Competencies Do Succession Planning<br />
and Management Coordinators Need to Use These<br />
Applications?<br />
The specialized competencies required by SP&M program coordinators to use<br />
online and high-tech applications in their programs will, of course, vary by the<br />
medium or media that they use and their applications. It is not advisable to try<br />
to be all things to all people, so it is best to target specific applications of<br />
potential value to the organization and spend only the time necessary to master<br />
those.<br />
Succession planning and management coordinators can apply online and<br />
high-tech methods in essentially three ways. First, they can try to learn it on<br />
their own. The competency requirements to do that can be the most daunting.<br />
It means mastery of the subject matter—such as, for instance, performance<br />
appraisal—and the technical issues associated with the application. As a simple
Using Technology to Support Succession Planning and Management Programs<br />
291<br />
example, putting the company’s performance appraisal system on the Web<br />
might mean that technical knowledge is required of HTML and JAVA languages.<br />
Likewise, preparing Web-based training may require knowledge of the subject<br />
matter, instructional design, and the programming languages necessary to<br />
place it on the Web.<br />
Second, contractual assistance could be hired to provide help with all or<br />
part of the project. That would permit the SP&M coordinator to concentrate<br />
on the subject matter and on managing the project. Hence, necessary competencies<br />
would focus around the subject area and project management. Technical<br />
issues would be handled by a contractor.<br />
Third, the SP&M coordinator could create a team whose members collectively<br />
possess the competencies necessary to perform the work. In this case,<br />
the coordinator would at least require subject matter competence, project<br />
management competence, and facilitation competence to help team members<br />
work together. The coordinator may be able to choose team members from<br />
within the organization who possess the requisite technical knowledge of the<br />
media or medium.<br />
Some competencies are shared no matter which of the three approaches<br />
is chosen. First, patience is an essential competency to work with any online<br />
or high-tech application. (It is never as easy as it appears to be.) Second,<br />
knowledge of the organization’s corporate culture and politics is also important.<br />
The SP&M coordinator must understand how decisions are made in the<br />
organization and be able to work through that process to achieve the desired<br />
results. Third and finally, the SP&M coordinator must be able to excite enthusiasm<br />
among other people for the project. Without these competencies, it will<br />
be difficult to make any application successful.<br />
Summary<br />
As this chapter has pointed out, online and high-tech approaches are having<br />
an important impact on succession planning and management practices. The<br />
chapter focused attention on four key questions: (1) How are online and hightech<br />
methods defined? (2) In what areas of succession planning and management<br />
can online and high-tech methods be applied? (3) How are online and<br />
high-tech applications used? and (4) What specialized competencies are required<br />
by succession planning and management coordinators to use these<br />
applications?<br />
The next chapter focuses on the important issue of evaluating succession<br />
planning and management programs. As decision-makers devote more time<br />
and other resources to succession issues, they naturally wonder if their efforts<br />
are paying off. For that reason, evaluation is becoming more important in succession<br />
planning and management.
C H A P T E R 1 3<br />
EVALUATING SUCCESSION<br />
PLANNING AND<br />
MANAGEMENT PROGRAMS<br />
After a succession planning and management (SP&M) program has been implemented,<br />
top managers will eventually ask, ‘‘Is this effort worth what it<br />
costs? How well is it working? Is it meeting the organization’s needs?’’ Simple<br />
answers to these questions will prove to be elusive because an SP&M program<br />
will affect many people, and will usually have to satisfy conflicting goals, interests,<br />
and priorities. But the questions do underscore the need to establish<br />
some way to evaluate the program. This chapter, then, will explore three simple<br />
questions: (1) What is evaluation? (2) What should be evaluated in SP&M?<br />
and (3) How should an SP&M program be evaluated?<br />
What Is Evaluation?<br />
Evaluation means placing value or determining worth. 1 It is a process of determining<br />
how much value is being added to an activity by a program, and it is<br />
through evaluation that the need for program improvements is identified and<br />
such improvements are eventually made. Evaluation is typically carried out by<br />
an evaluator or team of evaluators against a backdrop of client expectations<br />
about the program and the need for information on which to make sound<br />
decisions.<br />
Interest in Evaluation<br />
The evaluation of human resource programs has been a popular topic of numerous<br />
books, articles, and professional presentations. 2 Treatments of it have<br />
tended to focus on such bottom-line issues as cost/benefit analysis and return<br />
on investment, 3 which should not be surprising since, in view of the perception<br />
of HR practitioners, these issues are of chief interest to top managers.<br />
Training has figured most prominently in this literature, probably because it<br />
292
Evaluating Succession Planning and Management Programs<br />
293<br />
continues to enjoy the dubious reputation of being the first HR program to be<br />
slashed when an organization falls on hard times.<br />
On the other hand, writers on evaluation have tended to pay far less attention<br />
to SP&M than to training. One reason could be that systematic SP&M is<br />
less common in organizations than training is. A second reason could be that<br />
evaluations of SP&M are informally made on a case-by-case basis whenever a<br />
vacancy occurs in a key position: if a successor is ‘‘ready, willing, and able’’<br />
when needed, the SP&M program is given the credit; otherwise, it is blamed.<br />
While the value of SP&M should (of course) be judged on more than that basis<br />
alone, the reality is often far different.<br />
Key Questions Governing Evaluation<br />
To be performed effectively, evaluation for SP&M should focus on several key<br />
questions:<br />
1. Who will use the results?<br />
2. How will the results be used?<br />
3. What do the program’s clients expect from it?<br />
4. Who is carrying out the evaluation?<br />
The first question seeks to identify the audience. The second question seeks<br />
to clarify what decisions will be made based on evaluation results. The third<br />
question grounds evaluation in client expectations and program objectives.<br />
Finally, the fourth question provides clues about appropriate evaluation techniques<br />
based on the expertise of the chosen evaluator(s).<br />
What Should Be Evaluated?<br />
Some years ago, Donald Kirkpatrick developed a four-level hierarchy of training<br />
evaluation that may be usefully modified to help conceptualize what<br />
should be evaluated in SP&M. 4<br />
Kirkpatrick’s Hierarchy of Training Evaluation<br />
The four levels of Kirkpatrick’s training evaluation hierarchy are reaction,<br />
learning, behavior, and organizational outcomes or results. Reaction forms<br />
the base of the hierarchy and is easiest to measure. It examines customer satisfaction—that<br />
is, ‘‘How much did participants like what they learned?’’ Learning,<br />
the second level on the hierarchy, has to do with immediate change. In<br />
other words, ‘‘How well did participants master the information or skills they<br />
were supposed to learn in training?’’ The third level of the hierarchy, behavior,
294 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
has to do with on-the-job application. ‘‘How much change occurred on the<br />
job as a result of learner participation in training?’’ The highest level of Kirkpatrick’s<br />
hierarchy, the fourth and final one, is organizational outcomes, or results.<br />
It is also the most difficult to measure. ‘‘How much influence did the<br />
results or effects of training have on the organization?’’<br />
Modifying Kirkpatrick’s Hierarchy<br />
Use Kirkpatrick’s Hierarchy of Training Evaluation to provide a conceptual<br />
basis for evaluating an SP&M program. (Examine the Hierarchy of Succession<br />
Planning and Management Evaluation depicted in Exhibit 13-1.)<br />
Make the first level customer satisfaction, which corresponds to Kirkpatrick’s<br />
reaction level. Pose the following questions:<br />
▲ How satisfied with the SP&M program are its chief customers?<br />
▲ How satisfied are its customers with each program component—such as<br />
job descriptions, competency models, performance appraisal processes,<br />
individual potential assessment processes, individual development<br />
forms, and individual development activities?<br />
▲ How well does SP&M match up to individual career plans? How do<br />
employees perceive SP&M?<br />
Make the second level program progress, which is meant to correspond to<br />
Kirkpatrick’s learning level. Pose the following questions:<br />
▲ How well is each part of the SP&M program working compared to stated<br />
program objectives?<br />
▲ How well are individuals progressing through their developmental experiences<br />
in preparation for future advancement into key positions?<br />
Make the third level effective placements, which is meant to correspond to<br />
Kirkpatrick’s behavior level. Pose these questions:<br />
▲ What percentage of vacancies in key positions is the organization able<br />
to fill internally?<br />
▲ How quickly is the organization able to fill vacancies in key positions?<br />
▲ What percentage of vacancies in key positions is the organization able<br />
to fill successfully (that is, without avoidable turnover in the first two<br />
years in the position)?<br />
▲ How quickly are internal replacements for key positions able to perform<br />
at the level required for the organization?
Evaluating Succession Planning and Management Programs<br />
295<br />
Exhibit 13-1. The Hierarchy of Succession Planning and Management<br />
Evaluation<br />
Organization Results<br />
Effective Placements<br />
Program Progress<br />
Customer Satisfaction<br />
How is succession planning<br />
contributing to documentable and<br />
measurable organization results?<br />
What organizational successes and<br />
failures, if any, can be attributed<br />
solely to succession planning?<br />
What percentages of vacancies in<br />
key positions is the organization able<br />
to fill internally?<br />
How quickly is the organization able<br />
to fill vacancies in key positions?<br />
What percentage of vacancies in key<br />
positions is the organization able to<br />
fill successfully (without avoidable<br />
turnover in the first two years in the<br />
position)?<br />
How quickly are internal<br />
replacements for key positions able<br />
to perform at the level required for<br />
the organization?<br />
What savings, if any, can be<br />
demonstrated from not filling key<br />
positions for which alternative, and<br />
more innovative, approaches were<br />
used to maintain equivalent results?<br />
How well is each part of the<br />
succession planning program<br />
working compared to its stated<br />
objectives?<br />
How well are individuals progressing<br />
through their developmental<br />
experiences in preparation for future<br />
advancement into key positions?<br />
How satisfied with the succession<br />
planning program are its chief<br />
customers?<br />
How satisfied are targeted clients<br />
with each program component?<br />
How well does succession planning<br />
match up to individual career plans?
Evaluating Succession Planning and Management Programs<br />
296<br />
▲ What savings, if any, can be demonstrated from not filling key positions<br />
for which alternative, and more innovative, approaches were used to<br />
achieve results?<br />
Make the fourth level organizational results, which is meant to correspond<br />
to Kirkpatrick’s outcomes or results. Direct attention to the impact of<br />
SP&M on the organization’s ability to compete effectively, which is (admittedly)<br />
difficult to do. Consider the following questions:<br />
▲ How is SP&M contributing, if at all, to documentable organizational results?<br />
▲ What successes or failures in organizational strategic plans, if any, can<br />
be attributed to SP&M?<br />
Use the guidelines in Exhibit 13-2 and the worksheet in Exhibit 13-3 to consider<br />
ways to evaluate SP&M in an organization on each level of the hierarchy.<br />
Of course, it is possible to evaluate an SP&M program on all four levels, and<br />
when that is done, a scorecard for SP&M is created.<br />
How Should Evaluation Be Conducted?<br />
Evaluation may be conducted anecdotally, periodically, or programmatically.<br />
Anecdotal Evaluation<br />
Anecdotal evaluation is akin to using testimonials in evaluating training. 5 It<br />
examines the operation of the SP&M program on a case-by-case basis. As vacancies<br />
occur in key positions, someone—often the SP&M coordinator—documents<br />
in incident reports how they are filled. (See Exhibit 13-4 for an example<br />
of an incident report.) The incident reports are eventually brought to the organization’s<br />
SP&M committee for review and discussion. They provide a solid<br />
foundation for troubleshooting problems in SP&M that the organization is<br />
confronting. They can then be used as a basis for planning to handle similar<br />
problems in the future.<br />
Anecdotal evaluation dramatizes especially good and bad practices. This<br />
draws attention to them and provides an impetus for change, a chief advantage<br />
of the anecdotal approach. On the other hand, anecdotal evaluation suffers<br />
from a lack of research rigor. It is not necessarily representative of typical<br />
SP&M practices in the organization. (Indeed, it focuses on so-called special<br />
cases, horror stories, and war stories.) It may thus draw attention to unique,<br />
even minor, problems with SP&M in the organization.<br />
(text continues on page 301)
Exhibit 13-2. Guidelines for Evaluating the Succession Planning and Management Program<br />
Type/Level Purpose Strengths Weaknesses<br />
Customer<br />
Satisfaction<br />
Program<br />
Progress<br />
Effective<br />
Placements<br />
Organizational<br />
Results<br />
To measure client feelings<br />
about the program and its<br />
results.<br />
To measure results of each<br />
component of the succession<br />
planning program.<br />
To measure the results of the<br />
succession decisions made.<br />
To measure impact of the<br />
succession planning program<br />
on the organization.<br />
<br />
<br />
<br />
<br />
<br />
Easy to measure.<br />
Provides immediate feedback<br />
on program activities<br />
and components.<br />
Provides objective data on<br />
the effectiveness of the<br />
succession planning program.<br />
Provides objective data on<br />
impact to the job situation.<br />
Provides objective data for<br />
cost-benefit analysis and<br />
organizational support.<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Subjective.<br />
Provides no objective<br />
measurement of program<br />
results.<br />
Requires skill in program<br />
evaluation.<br />
Provides no measurement<br />
of skills of benefit to the<br />
organization.<br />
Requires first-rate<br />
employee performance<br />
appraisal system.<br />
Requires high level of evaluation<br />
design skills; requires<br />
collection of data<br />
over a period of time.<br />
Requires knowledge of the<br />
organization’s strategy<br />
and goals.<br />
(continues)
Exhibit 13-2. (continued)<br />
Type/Level Examples Guidelines for Development<br />
Customer<br />
Satisfaction<br />
Program<br />
Progress<br />
Effective<br />
Placements<br />
Organizational<br />
Results<br />
<br />
<br />
<br />
<br />
‘‘Happiness reports.’’<br />
Informal interviews with<br />
‘‘clients’’ at all levels.<br />
Group discussion in<br />
succession planning<br />
meetings.<br />
Examine individual movements<br />
through the organization.<br />
Performance checklists.<br />
Performance appraisals.<br />
Critical incident analysis.<br />
<br />
<br />
<br />
<br />
<br />
<br />
Design a survey form that can be easily tabulated.<br />
Ask questions to provide information about what you<br />
need to know: attitudes about each component of the<br />
succession planning program.<br />
Allow for anonymity and allow the respondents the<br />
opportunity to provide additional comments.<br />
Design an instrument that will provide quantitative<br />
data.<br />
Include ‘‘pre’’ and ‘‘post’’ level of skill/knowledge in<br />
design.<br />
Tie evaluation items directly to program objectives.<br />
<br />
Base measurement instrument on systematic analysis<br />
<br />
<br />
<br />
Organizational analysis.<br />
Speed of replacement.<br />
Cost of replacements.<br />
Cost of nonreplacements.<br />
of key positions.<br />
Consider the use of a variety of persons to conduct<br />
the evaluation.<br />
<br />
Involve all necessary levels of the organization.<br />
<br />
<br />
<br />
<br />
<br />
Gain commitment to allow access to organization indices<br />
and records.<br />
Use organization business plans and mission statements<br />
to compare organizational needs and program<br />
results.
Evaluating Succession Planning and Management Programs<br />
299<br />
Exhibit 13-3. A Worksheet for Identifying Appropriate Ways to Evaluate<br />
Succession Planning and Management in an Organization<br />
Directions: Use this worksheet to help you identify appropriate ways to evaluate the<br />
SP&M program in your organization.<br />
In column 1 below, indicate the various stakeholder groups (such as top managers,<br />
key position incumbents, line managers, and the SP&M coordinator) who will be<br />
primarily interested in evaluation results on SP&M in your organization. Then, in<br />
column 2, indicate what levels of evaluation—customer satisfaction, program progress,<br />
effective placements, and organizational results—will probably be of prime<br />
interest to each stakeholder group. Then, in column 3, indicate how evaluation of<br />
SP&M may be carried out in your organization.<br />
Column 1 Column 2 Column 3<br />
Stakeholder Groups What Levels of Eval- How Should Evaluafor<br />
Evaluation uation Will Probably tion of the SP&M<br />
Be of Prime Interest<br />
Program Be Carried<br />
to Each Group?<br />
Out in Your Organization?
300 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 13-4. A Sample ‘‘Incident Report’’ for Succession Planning<br />
and Management<br />
Directions: The purpose of this ‘‘incident report’’ is to track successor/replacement<br />
experiences in your organization.<br />
Answer the questions appearing in the spaces below. Be as truthful as possible<br />
because the collective results of many incident reports will be used to identify program<br />
improvement initiatives for the succession planning program.<br />
Fill out this report for each position filled from within. (This report should be completed<br />
in addition to any personnel requisitions/justification forms that you are to<br />
complete.) Submit the completed form to (name) at(organization address) within 3<br />
weeks after filling the vacancy.<br />
Name of Departing Employee<br />
Department<br />
Time in Position<br />
Job Title<br />
Reason for Leaving (if known)<br />
Name of Replacing Employee<br />
Department<br />
Work Unit/Team<br />
Job Title<br />
Time in Position<br />
Today’s Date<br />
1. Describe how this position is being replaced (internally/externally).<br />
2. Was there an identifiable ‘‘successor’’ who had been prepared to assume this<br />
position previously? If so, briefly explain who and how the individual was being<br />
prepared; if not, briefly explain reasons for not preparing a successor.<br />
3. Who was selected for the position, and why was he/she selected?<br />
4. If an individual other than an identifiable successor was chosen for the position,<br />
explain why.<br />
Approval<br />
Management Employee<br />
(Signature)<br />
Title
301 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Periodic Evaluation<br />
Periodic evaluation examines components of SP&M at different times, focusing<br />
attention on program operations at present or in the recent past. Rather than<br />
evaluate critical incidents (as anecdotal evaluation does) or all program components<br />
(as programmatic evaluation does), periodic evaluation examines isolated<br />
program components. For instance, the SP&M coordinator may direct<br />
attention to:<br />
▲ The Program Mission Statement<br />
▲ Program Objectives, Policy, and Philosophy<br />
▲ Methods of Determining Work Requirements for Key Positions<br />
▲ Employee Performance Appraisal<br />
▲ Employee Potential Assessment<br />
▲ Individual Development Planning<br />
▲ Individual Development Activities<br />
Periodic evaluation may be conducted during regular SP&M meetings and/<br />
or in SP&M committee meetings. Alternatively, the organization’s decisionmakers<br />
may wish to establish a task force, create a subcommittee of the SP&M<br />
committee, or even involve a committee of the board of directors in this evaluation<br />
process.<br />
A chief advantage of periodic evaluation is that it provides occasional, formal<br />
monitoring of the SP&M program. That process can build involvement,<br />
and thus ownership, of key stakeholders while simultaneously surfacing important<br />
problems in the operation of the SP&M program. A chief disadvantage<br />
of periodic evaluation is that it makes the improvement of SP&M an incremental<br />
rather than a continuous effort. Problems may be left to fester for too long<br />
before they are targeted for investigation.<br />
Programmatic Evaluation<br />
Programmatic evaluation examines the SP&M program comprehensively<br />
against its stated mission, objectives, and activities. It is an in-depth program<br />
review and resembles the human resources audit that may be conducted of all<br />
HR activities. 6<br />
Programmatic evaluation is usually carried out by a formally appointed<br />
committee or by an external consultant. The SP&M coordinator is usually a<br />
member of a committee. Representatives of key line management areas—and<br />
the CEO or members of the corporate board of directors—may also be members.<br />
Examine the steps in Exhibit 13-5 and the checklist in Exhibit 13-6 as starting<br />
points for conducting a program evaluation of SP&M in an organization.<br />
(text continues on page 307)
302 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 13-5. Steps for Completing a Program Evaluation of a Succession<br />
Planning and Management Program<br />
Step 1 Assemble a group of 5–8 individuals who<br />
Assemble a committee to have their own roles to play in the succession<br />
conduct the program evalconsist<br />
of the CEO, succession planning co-<br />
planning program (ideally the group should<br />
uation.<br />
ordinator, VP of HR, and two or more key operating<br />
managers).<br />
Step 2 Call a meeting, providing briefing materials<br />
Brief committee members to committee members beforehand.<br />
<br />
on the need for evaluating Explain the value of evaluating the succession<br />
the succession planning<br />
planning program.<br />
<br />
program and the steps to Provide benchmarking information from<br />
be followed in the evalua- other firms, if available.<br />
<br />
tion effort.<br />
Provide information from ‘‘incident reports’’<br />
and other indicators of the program’s progress.<br />
Agree on evaluation objectives, approaches,<br />
and steps.<br />
Step 3 Conduct research.<br />
Conduct background research<br />
on the relative effectiveness<br />
of the<br />
succession planning program.<br />
Step 4 Analyze results.<br />
<br />
Analyze results, make<br />
Prepare recommendations for program imrecommendations<br />
for<br />
provements.<br />
<br />
program improvements,<br />
Write report and prepare oral presentation.<br />
and document evaluation<br />
results.<br />
Step 5 Circulate written report.<br />
<br />
Communicate results.<br />
Present oral report/briefing to those responsible<br />
for the succession planning program.
Evaluating Succession Planning and Management Programs<br />
303<br />
Step 6 Ask those with responsibility for succession<br />
Identify specific actions for planning, such as key operating managers,<br />
improvement.<br />
to establish improvement objectives.<br />
Step 7 Take continuing action for improvement<br />
Take continuing action for through training, briefings, and other means.<br />
program improvement.
304 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 13-6. A Checksheet for Conducting a Program Evaluation for the<br />
Succession Planning and Management Program<br />
Directions: Use this checksheet as a starting point for deciding what to evaluate<br />
in your organization’s succession planning program. Ask members of a program<br />
evaluation committee to complete the following checksheet, compare notes, and<br />
then use the results as the basis for recommending improvements to the succession<br />
planning program. Add, delete, or modify characteristics in the left column as appropriate.<br />
Characteristics<br />
of Effective<br />
Programs<br />
Does your<br />
organization’s<br />
succession planning<br />
program<br />
have this<br />
characteristic?<br />
How important do you<br />
believe this characteristic<br />
to be for an effective<br />
succession planning<br />
program?<br />
For the succession Not Very<br />
planning program, YES NO Important Important<br />
has your organization: () () 1 2 3 4 5<br />
1. Tied the succession plan- ( ) ( ) 1 2 3 4 5<br />
ning program to organizational<br />
strategic plans?<br />
2. Tied the succession plan- ( ) ( ) 1 2 3 4 5<br />
ning program to individual<br />
career plans?<br />
3. Tied the succession plan- ( ) ( ) 1 2 3 4 5<br />
ning program to training<br />
programs?<br />
4. Prepared a written pro- ( ) ( ) 1 2 3 4 5<br />
gram purpose statement?<br />
5. Prepared written program ( ) ( ) 1 2 3 4 5<br />
goals to indicate what results<br />
the succession planning<br />
program should<br />
achieve?<br />
6. Established measurable ( ) ( ) 1 2 3 4 5<br />
objectives for program operation<br />
(such as number of<br />
positions replaced per<br />
year)?<br />
7. Identified what groups are ( ) ( ) 1 2 3 4 5<br />
to be served by the program,<br />
in priority order?
Evaluating Succession Planning and Management Programs<br />
305<br />
8. Established a written policy ( ) ( ) 1 2 3 4 5<br />
statement to guide the<br />
program?<br />
9. Articulated a written phi- ( ) ( ) 1 2 3 4 5<br />
losophy about the program?<br />
10. Established a program ac- ( ) ( ) 1 2 3 4 5<br />
tion plan?<br />
11. Established a schedule of ( ) ( ) 1 2 3 4 5<br />
program events based on<br />
the action plan?<br />
12. Fixed responsibility for or- ( ) ( ) 1 2 3 4 5<br />
ganizational oversight of<br />
the program?<br />
13. Fixed responsibility of each ( ) ( ) 1 2 3 4 5<br />
participant in the program?<br />
14. Established incentives/re- ( ) ( ) 1 2 3 4 5<br />
wards for identified successors<br />
in the succession<br />
planning program?<br />
15. Established incentives/re- ( ) ( ) 1 2 3 4 5<br />
wards for managers with<br />
identified successors?<br />
16. Developed a means to ( ) ( ) 1 2 3 4 5<br />
budget for a succession<br />
planning program?<br />
17. Devised a means to keep ( ) ( ) 1 2 3 4 5<br />
records for individuals who<br />
are designated as successors?<br />
18. Created workshops to ( ) ( ) 1 2 3 4 5<br />
train management employees<br />
about the succession<br />
planning program?<br />
19. Created workshops to ( ) ( ) 1 2 3 4 5<br />
train individuals about career<br />
planning?<br />
20. Established a means to ( ) ( ) 1 2 3 4 5<br />
clarify present position responsibilities?<br />
(continues)
306 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 13-6. (continued)<br />
Characteristics<br />
of Effective<br />
Programs<br />
Does your<br />
organization’s<br />
succession planning<br />
program<br />
have this<br />
characteristic?<br />
How important do you<br />
believe this characteristic<br />
to be for an effective<br />
succession planning<br />
program?<br />
For the succession Not Very<br />
planning program, YES NO Important Important<br />
has your organization: () () 1 2 3 4 5<br />
21. Established a means to<br />
clarify future position responsibilities?<br />
( ) ( ) 1 2 3 4 5<br />
22. Established a means to<br />
appraise individual performance?<br />
( ) ( ) 1 2 3 4 5<br />
23. Established a means to<br />
compare individual skills<br />
to the requirements of a<br />
future position (potential<br />
assessment)? ( ) ( ) 1 2 3 4 5<br />
24. Established a way to review<br />
organizational talent<br />
at least annually? ( ) ( ) 1 2 3 4 5<br />
25. Established a way to forecast<br />
future talent needs? ( ) ( ) 1 2 3 4 5<br />
26. Established a way to plan<br />
for meeting succession<br />
planning needs through<br />
individual development<br />
plans? ( ) ( ) 1 2 3 4 5<br />
27. Established a means to<br />
track development activities<br />
to prepare successors<br />
for eventual advancement? ( ) ( ) 1 2 3 4 5<br />
28. Established a means to<br />
evaluate the results of the<br />
succession planning program?<br />
( ) ( ) 1 2 3 4 5
Evaluating Succession Planning and Management Programs<br />
307<br />
(Compare Exhibit 13-6 to the survey responses appearing in Exhibit 2-1 as a<br />
means of evaluating your organization’s SP&M program against others.)<br />
Summary<br />
This chapter addressed three simple questions: (1) What is evaluation? (2)<br />
What should be evaluated in succession planning and management? and (3)<br />
How should a succession planning and management program be evaluated?<br />
Evaluation was defined as the process of placing value or determining worth.<br />
It is through evaluation that the need for improvements is identified and such<br />
improvements are eventually made to the succession planning and management<br />
program. Evaluation should focus on several key questions: (1) Who will<br />
use the results? (2) How will the results be used? (3) What do the program’s<br />
clients expect from it? and (4) Who is carrying out the evaluation?<br />
The evaluation of succession planning and management was focused on<br />
four levels, comparable to those devised by Donald Kirkpatrick to describe<br />
training evaluation. Those four levels are customer satisfaction, program progress,<br />
effective placements, and organizational results. One conducts evaluation<br />
anecdotally, periodically, or programmatically. Anecdotal evaluation is akin to<br />
using testimonials in evaluating training. Periodic evaluation examines isolated<br />
components of the succession planning and management program at different<br />
times, focusing attention on program operations at present or in the recent<br />
past. Programmatic evaluation examines the succession planning and management<br />
program comprehensively against its stated mission, objectives, and activities.
C H A P T E R 1 4<br />
THE FUTURE OF SUCCESSION<br />
PLANNING AND MANAGEMENT<br />
No organization is immune to changing external environmental conditions.<br />
However, what external conditions will affect an organization varies, depending<br />
on such factors as the organization’s industry, size, and relative market<br />
dominance. Moreover, how those conditions affect an organization depends<br />
on the ways in which its leaders and workers choose to address them. These<br />
principles hold as true for succession planning and management (SP&M) programs<br />
as for strategic planning.<br />
Examining trends is a popular HR activity. Much has been written in recent<br />
years about trends affecting HR generally, 1 functional areas within HR specifically,<br />
2 and SP&M efforts. 3 A cursory glance at the writing in the field yields<br />
many topics concerning outsourcing HR, cutting HR (and particularly benefits)<br />
costs, transforming HR into a strategic partner, building bench strength and<br />
talent pools, enhancing work and life balance, maintaining employee security<br />
in the wake of increasing violence in the workplace and threats of terrorism<br />
outside the workplace, 4 and using technology to leverage HR productivity.<br />
In this final chapter, I gaze into the crystal ball and offer predictions for the<br />
future of SP&M that are likely to arise from changing external environmental<br />
conditions. While some predictions remain unchanged from the last edition<br />
of this book, I add some additional ones. SP&M needs will:<br />
▲ Prompt efforts by decision-makers to find a flexible range of strategies<br />
to address organizational talent needs.<br />
▲ Lead to integrated retention policies and procedures that seek the early<br />
identification of high-potential talent, efforts to retain that talent, and<br />
efforts to retain older high-potential workers.<br />
▲ Have a global impact.<br />
▲ Be influenced increasingly by real-time technological innovations.<br />
▲ Become an issue in government agencies, academic institutions, and<br />
nonprofit organizations in a way never before seen. Businesses will not<br />
be the only organizations interested in succession issues.<br />
308
The Future of Succession Planning and Management<br />
309<br />
▲ Lead to increasing organizational openness about possible successors.<br />
▲ Increasingly seek to integrate effective succession issues with careerdevelopment<br />
issues.<br />
▲ Be heavily influenced by concerns about work/family balance and spirituality<br />
issues.<br />
▲ Focus increasingly on real-time talent-development efforts as well as<br />
strategic efforts, which center on the role of managers in daily work<br />
with their reports.<br />
▲ Center as much on ethical and value-oriented issues as on competencybased<br />
issues.<br />
▲ Become more fully integrated with selection decisions.<br />
▲ Focus on leveraging talent as well as developing it.<br />
▲ Include alternatives to one-hire-at-a-time approaches, such as mergers,<br />
acquisitions, or takeovers for the purpose of rapid and broad-based talent<br />
acquisition.<br />
▲ Become closely linked to risk management and concerns about security.<br />
▲ Become associated with more than management succession.<br />
Before you read about these predictions, use the worksheet in Exhibit 14-1 to<br />
structure your thinking (and that of decision-makers in your organization).<br />
The Fifteen Predictions<br />
Prediction 1: Decision-Makers Will Seek Flexible Strategies to Address Future<br />
Organizational Talent Needs<br />
In the future, decision-makers will not view succession issues as one problem<br />
requiring only one solution. Instead, they will seek a range of strategies to<br />
address future organizational talent needs that will include, but will go beyond,<br />
SP&M programs. In other words, succession problems will be solved<br />
using many possible solutions. The choice of a solution will be made on a caseby-case<br />
basis, but with a strategic view that seeks an integration of approaches.<br />
Think about it for a minute. In how many ways can an organization’s talent<br />
needs be met through approaches other than an SP&M program that is designed<br />
to build in-house bench strength over time? Consider at least fifteen<br />
possible alternative approaches. Each approach should be reviewed at the time<br />
decision-makers plan for succession needs. Decision-makers should begin by<br />
clarifying what talent they require, why their organization has that need, and<br />
how the need might be met.<br />
The first alternative approach to SP&M is to hire from the outside. In fact,<br />
this is probably the most obvious way to meet a talent need other than through<br />
internal promotion or development. It is sometimes chosen before internal<br />
(text continues on page 312)
Exhibit 14-1. A Worksheet to Structure Your Thinking About Predictions for Succession Planning and<br />
Management in the Future<br />
Directions: Use this worksheet to structure your thinking about possible predictions that may influence SP&M programs in<br />
the future. For each prediction listed in Column 1 below, indicate in Column 2 whether you believe that the prediction is<br />
true. Then describe under Column 3 what you believe the prediction means in your organization and under Column 4 how<br />
much impact that prediction will have in your organization. Finally, under Column 5, offer suggestions about what your<br />
organization should do about the prediction. There are no ‘‘right’’ or ‘‘wrong’’ approaches to addressing these predictions.<br />
Instead, use this worksheet to do some brainstorming about predictions affecting SP&M in your organization in the future.<br />
Add paper if necessary.<br />
Column 1<br />
What is the prediction?<br />
Succession planning and<br />
management will:<br />
1 Prompt efforts by decisionmakers<br />
to find a flexible range<br />
of strategies to address organizational<br />
talent needs.<br />
2 Lead to integrated retention<br />
policies and procedures that<br />
seek the early identification of<br />
high-potential talent, efforts to<br />
retain that talent, and efforts to<br />
retain older high-potential<br />
workers.<br />
Column 2<br />
Do you<br />
believe the<br />
prediction<br />
is true?<br />
Yes<br />
<br />
□<br />
□<br />
No<br />
<br />
□<br />
□<br />
Column 3<br />
What does the<br />
prediction<br />
mean in your<br />
organization?<br />
Column 4<br />
How much impact<br />
will that prediction<br />
have in your<br />
organization?<br />
Column 5<br />
What actions should<br />
your organization<br />
take to address the<br />
prediction?
3 Have a global impact. □ □<br />
4 Be influenced increasingly by<br />
real-time technological innovations.<br />
5 Become an issue in government<br />
agencies, academic institutions,<br />
and nonprofit organizations in a<br />
way never before seen. Businesses<br />
will not be the only organizations<br />
interested in<br />
succession issues.<br />
6 Lead to increasing organizational<br />
openness about possible<br />
successors.<br />
7 Increasingly seek to integrate<br />
effective succession issues with<br />
career development issues.<br />
8 Be heavily influenced by concerns<br />
about work/family balance<br />
and spirituality issues.<br />
□<br />
□<br />
□<br />
□<br />
□<br />
□<br />
□<br />
□<br />
□<br />
□
312 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
replacements are considered. A key advantage of this approach is that it prevents<br />
inbreeding, since newcomers often bring with them fresh solutions to<br />
old organizational problems. A key disadvantage of this approach is that the<br />
cycle time required to fill a vacancy can be agonizingly long—and there is no<br />
guarantee that someone chosen from outside the organization will successfully<br />
adapt to its unique corporate culture.<br />
A second approach is to reorganize. Take just one example: If the vice<br />
president of human resources retires, dies, or leaves the organization, the CEO<br />
may choose to meet the need by assigning the HR function to another manager.<br />
That is just one example of how to solve a talent need by reorganizing.<br />
The same approach can be used to meet talent needs in other key positions.<br />
Of course, this approach only works if someone qualified is available—and has<br />
sufficient interest, motivation, and ability to assume more responsibility.<br />
A third approach is to outsource the work. If this approach is chosen, the<br />
challenge is to find a suitable outsourcing partner. That cannot always be<br />
done, but it is one option. A disadvantage is that this approach should be used<br />
only with activities not directly related to the organization’s core competence—the<br />
key strategic strength that sets an organization apart from competitors.<br />
It is, after all, unwise to outsource the essence of what makes an<br />
organization competitive, since that path can lead to bankruptcy or to a takeover.<br />
A fourth approach is to insource the work. If this approach is used, decision-makers<br />
seek to find synergy between two functions. Of course, this<br />
assumes that some excess capacity—that is, people or resources—exists somewhere<br />
in the organization. Suppose, for instance, that a vacancy for a key position<br />
exists in one industrial plant. That need could be met by insourcing the<br />
work to another plant operated by the same company. An external partner is<br />
not sought. Instead, the function is performed internally. This approach differs<br />
from reorganization because the insourcing partner does not permanently assume<br />
the duties of the new function but performs them only temporarily.<br />
A fifth approach is to hire, on contract, a temporary replacement for a key<br />
position.. Some firms specialize in supplying temporary help, even for positions<br />
such as CEO, with which temps have not been historically associated.<br />
A sixth approach is to bring in a consultant to help. While similar to using<br />
a temp, this approach differs in that a consultant is usually not on site every<br />
day to perform the work, as temps generally are. The consultant, in short,<br />
performs the work on a project-to-project basis and may even telecommute.<br />
This can reduce costs but may also diminish the impact of the key position on<br />
the organization.<br />
A seventh approach is to transfer someone from another part of the organization,<br />
temporarily or permanently, to meet a succession need. Of course, it is<br />
usually assumed that an individual who is transferred meets at least the basic<br />
entry-level requirements for the job. Internal transfers, however, have the disadvantage<br />
of touching off a domino effect (sometimes called a musical chairs<br />
effect), in which the movement of one person can prompt movements by many<br />
others.
The Future of Succession Planning and Management<br />
313<br />
An eighth approach is to acquire another organization that possesses the<br />
needed talent. In the past, mergers, acquisitions, purchases, and takeovers<br />
were sought to realize savings from economies of scale, a desire for higher<br />
executive salaries resulting from correlations between senior executive pay<br />
and organizational size, and the pursuit of improved integration with such key<br />
groups as suppliers, distributors, and even competitors. In the future, however,<br />
CEOs will regard mergers, acquisitions, purchases, and takeovers as one<br />
means to address talent shortages. 5 (That is an issue treated at greater length<br />
below.) Organizations with well-known core competencies will become acquisition<br />
targets for other firms that are cash rich but are experiencing talent<br />
shortages. Instead of struggling to fill one vacancy at a time, organizations will<br />
look for other firms to absorb outright to achieve a massive infusion of new<br />
talent.<br />
The ninth approach is to reduce or eliminate the work completely. In other<br />
words, the work performed by an otherwise critically important function or<br />
position could be reduced or eliminated to solve a succession problem. As one<br />
way to do that, the CEO can choose to spin off or sell the business or function.<br />
A tenth approach is to delegate the work up to a high potential in the<br />
organization. This is, of course, a form of reorganization. But instead of giving<br />
responsibility to another manager when the organization experiences a loss of<br />
talent, the work is absorbed by the immediate organizational superior.<br />
An eleventh approach is to delegate the work down. As with the tenth<br />
approach, it is a form of reorganization. The work of a high-potential employee<br />
is absorbed by one or more of his or her subordinates, without promotion. A<br />
variation of this approach is to form a team and delegate the work to that<br />
group.<br />
A twelfth approach is to form a strategic alliance with another organization<br />
to meet succession needs. This usually means arranging a short-term partnership.<br />
While strategic alliances have often been formed in product manufacturing,<br />
they could also be formed to meet succession needs. However, this<br />
approach is potentially useful on a short-term basis only, since few organizations<br />
want to lose high-potential talent forever.<br />
A thirteenth approach is to trade needed talent, temporarily or permanently,<br />
with other organizations. Similar to a strategic alliance, this approach<br />
tends to be even shorter term. Some organizations provide ‘‘loaned executives,’’<br />
for instance, to build the competencies of their high potentials. However,<br />
few organizations want to lose their high potentials for an extended time.<br />
A fourteenth approach is to recruit globally rather than domestically, targeting<br />
individuals with needed talent outside the United States. Multinational<br />
corporations especially may be able to trade talent from one part of the world<br />
to another and thereby treat succession issues as moves on a global chessboard.<br />
A fifteenth approach is to hire back managers or other talent. As the U.S.<br />
population ages, this approach is already being used by many organizations,<br />
such as is the case of Deloitte’s Senior Leaders Program, launched to preserve
The Future of Succession Planning and Management<br />
314<br />
the knowledge and experience of its talent after the traditional retirement<br />
age. 6 Use the worksheet in Exhibit 14-2 to structure your thinking about ways to<br />
meet succession needs based on the approaches described above. Whenever<br />
a talent need arises in your organization, use the worksheet to contemplate<br />
possibilities for meeting that need. Also use the worksheet to integrate the<br />
strategies so that your organization is not dependent on only one strategy.<br />
Prediction 2: Decision-Makers Will Seek Integrated Retention Policies and Procedures<br />
Employers in the United States may face a growing problem in finding and<br />
keeping talent. As this book goes to press, employment levels are at record<br />
lows. While that means that talent is plentiful at the moment, employers can<br />
no longer safely assume that the future will be like the present. It is likely<br />
they will be competing with many other employers, and this competition is<br />
especially intense for high-potential workers with proven track records.<br />
To address this problem, employers should formulate and implement policies<br />
and procedures to identify the high-potential talent earlier and to retain<br />
that talent longer. Employers will thus need to take such steps as these:<br />
▲ Develop early tracking systems to find new hires having special promise.<br />
That can be done with potential assessments performed within the first<br />
few months of employment.<br />
▲ Track the reasons for ‘‘quits’’ generally and the reasons for the departure<br />
of high-potential talent specifically. That may require revamped exit<br />
interviews to capture information about why people (and especially<br />
high potentials) leave, where they go, and what they believe could have<br />
prompted them to stay. Exit interview systems beg to be reinvented.<br />
▲ Use attitude surveys on a continuing basis to predict turnover and measure<br />
job satisfaction. That can be done simply by asking workers on a<br />
survey whether they plan to quit within the next year and then supplying<br />
questions to uncover chief sources of dissatisfaction. The results<br />
can be cross-tabulated, and provide useful information for improving<br />
retention and making accurate predictions of turnover.<br />
▲ Track voluntary turnover and critical turnover by department and examine<br />
increases in each department for trends or patterns. Then act to<br />
address problems in these hot spots.<br />
▲ Provide incentives for people to remain with the organization. (Do not<br />
assume that all incentives are financial.) Find out what people need to<br />
encourage them to remain with the employer.<br />
By taking these and similar actions, employers can devise an integrated retention<br />
strategy to reduce turnover and thereby improve retention.<br />
(text continues on page 318)
Exhibit 14-2. A Worksheet to Structure Your Thinking About Alternative Approaches to Meeting Succession<br />
Needs<br />
Directions: Use this worksheet to structure your thinking about alternative approaches to meeting succession needs. First,<br />
describe the succession need in the space below and indicate how important it is to the organization, why it is important,<br />
and when action needs to be taken to meet the need. Then, rate possible alternatives to internal succession. Then rate each<br />
alternative approach, using the following scale:<br />
1 Not at All Effective<br />
2 It May Be Somewhat Useful<br />
3 It Will Be Useful<br />
4 It Will Be Very Useful<br />
What is the succession need? (Describe the need. Then answer these questions: (1) How important is this succession need<br />
to the organization? (2) Why is it important? and (3) When does action need to be taken to meet the need?)<br />
Approach<br />
How well can the succession<br />
need be met by:<br />
Not at All<br />
Effective<br />
Rating of the Approach<br />
It May Be<br />
Somewhat<br />
Useful<br />
It Will Be<br />
Useful<br />
It Will Be<br />
Very Useful<br />
1 Hiring from the outside? 1 2 3 4<br />
2 Reorganizing? 1 2 3 4<br />
3 Outsourcing the work? 1 2 3 4<br />
4 Insourcing the work? 1 2 3 4<br />
5 Hiring a temporary replacement<br />
on contract?<br />
1 2 3 4<br />
Notes<br />
(continues)
Exhibit 14-2. (continued)<br />
Approach<br />
How well can the succession<br />
need be met by:<br />
6 Bringing in a consultant to<br />
help?<br />
7 Transferring someone from<br />
another part of the organization,<br />
temporarily or permanently,<br />
to meet the succession<br />
need?<br />
8 Acquiring another organization<br />
that possesses the<br />
needed talent?<br />
9 Reducing or eliminating the<br />
work completely?<br />
10 Delegating the work up in the<br />
organization?<br />
11 Delegating the work down in<br />
the organization?<br />
12 Forming a strategic alliance<br />
with another organization to<br />
meet the need?<br />
Not at All<br />
Effective<br />
Rating of the Approach<br />
It May Be<br />
Somewhat<br />
Useful<br />
It Will Be<br />
Useful<br />
It Will Be<br />
Very Useful<br />
1 2 3 4<br />
1 2 3 4<br />
1 2 3 4<br />
1 2 3 4<br />
1 2 3 4<br />
1 2 3 4<br />
1 2 3 4<br />
Notes
13 Trading needed talent, temporarily<br />
or permanently, with<br />
other organizations?<br />
14 Recruiting globally rather<br />
than domestically, targeting<br />
individuals with needed talent<br />
outside the borders of the<br />
United States?<br />
15 Hiring back needed managers<br />
or other talent after they<br />
have departed from the organization?<br />
16 What other alternative approaches<br />
can you think of,<br />
and how effective are they?<br />
(List them below.)<br />
1 2 3 4<br />
1 2 3 4<br />
1 2 3 4<br />
1 2 3 4
318 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Prediction 3: Succession Planning and Management Issues Will Have a Global Impact<br />
Succession issues have emerged as front-burner topics in the United States<br />
because of the well-known demographic trends for retirement in future years.<br />
(See Exhibit 14-3 for the projected U.S. population breakdown in the year<br />
2025.) Indeed, the number of people between the ages of fifty-five and sixtyfour<br />
is expected to increase by 54 percent between 1996 and 2006. 7 At the<br />
same time, there will be a decrease of 8.8 percent in the number of people<br />
expected to enter the workforce in the traditional entry-level ages of twentyfive<br />
to thirty-four. 8<br />
What is not so well known is that trends elsewhere in the world also point<br />
toward growing numbers of older people as a greater proportion of the population.<br />
For instance, consider Exhibits 14-4, 14-5, and 14-6. These exhibits depict<br />
the projected populations in China, the United Kingdom, and France,<br />
respectively, in the year 2025. Note the numbers of people in the traditional<br />
postretirement categories in each nation. Government attempts to control<br />
overpopulation (such as the ‘‘one child per couple’’ policy in China) and preferences<br />
for smaller families elsewhere point toward growth in the number of<br />
elder citizens and fewer young people to take their place. As there are more<br />
elderly people living longer in the world, succession issues will emerge as a<br />
global concern.<br />
Based on these demographic projections, I predict that SP&M issues will<br />
be a challenge to many nations by the year 2025. Many organizations, both<br />
large and small, will need to devote attention to succession issues in a way<br />
they have not traditionally done. Also influential will be national policies that<br />
encourage the employment of older citizens. Expect that many nations will<br />
Exhibit 14-3. Age Distribution of the U.S. Population in 2025<br />
Male<br />
United States: 2025<br />
14<br />
12<br />
10<br />
8<br />
6<br />
4<br />
2<br />
85+<br />
80–84<br />
75–79<br />
70–74<br />
65–69<br />
60–64<br />
55–59<br />
50–54<br />
45–49<br />
40–44<br />
35–39<br />
30–34<br />
25–29<br />
20–24<br />
15–19<br />
10–14<br />
5–9<br />
0–4<br />
Female<br />
0 0 2 4 6 8 10 12 14<br />
Population (in millions)<br />
Source: U.S. Census Bureau (2000). Population pyramid summary for the U.S. http://www.census.gov/egi-bin/ipc/idbpyrs<br />
..pl?ctyIN&outs&ymax250.
The Future of Succession Planning and Management<br />
319<br />
Exhibit 14-4. Age Distribution of the Chinese Population in 2025<br />
Male<br />
China: 2025<br />
85+<br />
80–84<br />
75–79<br />
70–74<br />
65–69<br />
60–64<br />
55–59<br />
50–54<br />
45–49<br />
40–44<br />
35–39<br />
30–34<br />
25–29<br />
20–24<br />
15–19<br />
10–14<br />
5–9<br />
0–4<br />
Female<br />
70 60 50 40 30 20 10 0 0 10 20 30 40 50 60 70<br />
Population (in millions)<br />
Source: U.S. Census Bureau (2000). Population pyramid summary for China. http://www.census.gov/egi-bin/ipc/idbpyrs<br />
..pl?ctyIN&outs&ymax250.<br />
Exhibit 14-5. Age Distribution of the Population in the United Kingdom in<br />
2025<br />
Male<br />
United Kingdom: 2025<br />
Female<br />
85+<br />
80–84<br />
75–79<br />
70–74<br />
65–69<br />
60–64<br />
55–59<br />
50–54<br />
45–49<br />
40–44<br />
35–39<br />
30–34<br />
25–29<br />
20–24<br />
15–19<br />
10–14<br />
5–9<br />
0–4<br />
2.5 2.0 1.5 1.0 0.5 0.0 0.0 0.5 1.0 1.5 2.0 2.5<br />
Population (in millions)<br />
Source: U.S. Census Bureau (2000). Population pyramid summary for the United Kingdom. http://www.census.gov/egi-bin/<br />
ipc/idbpyrs..pl?ctyIN&outs&ymax250.<br />
begin to focus on older workers and institute policies to encourage people to<br />
retire later. These older workers will represent an important political group,<br />
exerting influence directly or indirectly on government policymakers.<br />
Although managers in the United States are often tempted to think only in<br />
terms of domestic talent, the fact remains that SP&M issues have a global impact<br />
and may require a global solution. At one time, many companies relied<br />
heavily on expatriate labor forces to meet succession needs globally. In other
320 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 14-6. Age Distribution of the French Population in 2025<br />
Male<br />
France: 2025<br />
85+<br />
80–84<br />
75–79<br />
70–74<br />
65–69<br />
60–64<br />
55–59<br />
50–54<br />
45–49<br />
40–44<br />
35–39<br />
30–34<br />
25–29<br />
20–24<br />
15–19<br />
10–14<br />
5–9<br />
0–4<br />
Female<br />
2.5 2.0 1.5 1.0 0.5 0.0 0.0 0.5 1.0 1.5 2.0 2.5<br />
Population (in millions)<br />
Source: U.S. Census Bureau (2000). Population pyramid summary for France. http://www.census.gov/egi-bin/ipc/idbpyrs<br />
..pl?ctyIN&outs&ymax250.<br />
words, when they needed specialized skills not available in the developing<br />
world, they simply exported talent from the developed world. But this strategy<br />
is less frequently used as decision-makers pursue localization strategies designed<br />
to identify and accelerate the development of high-potential local<br />
talent. 9<br />
A localization strategy has many advantages. One such advantage is that it<br />
builds the bench strength across the corporation, serving as a rising tide that<br />
lifts all boats. In other words, the corporation builds bench strength everywhere<br />
rather than relying on exported talent. A second advantage is that local<br />
talent faces no problems adapting to the local culture the way expatriates do.<br />
A third advantage is that local talent is not resented, as expatriates often are,<br />
for the higher wages and better benefit packages they receive. A fourth advantage<br />
is that a localization strategy provides political and public relations advantages,<br />
since the organizations are seen as building the local economy rather<br />
than exploiting it.<br />
In the future, localization efforts will increase. Government policymakers<br />
may even require it. Additionally, forward-thinking corporations will find ways<br />
to hitchhike on the talent they have internationally by using online and other<br />
virtual methods to encourage ‘‘sharing,’’ telecommuting, videocommuting,<br />
concurrent work (prepared in one nation but used in another), and idea generation<br />
across borders. These developments have profound implications for<br />
SP&M, since they can build competencies at the same time as the work is<br />
performed.<br />
The challenge for SP&M program coordinators will be to find ways to carry<br />
so-called soft skills technologies—such as management and HR practices—<br />
across cultures. That may require special programs to encourage information-
The Future of Succession Planning and Management<br />
321<br />
sharing and skill building across cultures, through either online or face-to-face<br />
approaches.<br />
Prediction 4: Succession Issues Will Be Influenced by Real-Time Technological Innovations<br />
As Chapter 12 showed, technological innovation is already exerting a major<br />
influence on succession issues. This trend will continue. Right now, many organizations<br />
are using online methods for recruitment. In the future, online<br />
methods will be used in real time to conduct competency modeling, potential<br />
assessment, performance appraisal, individual development planning, and individual<br />
coaching.<br />
The challenge for SP&M program coordinators will be to find and apply<br />
these approaches. One major goal, of course, is to slash cycle time for filling<br />
key positions and sourcing talent. Another major goal is to lower geographical<br />
barriers, making it possible to access—and develop—talent anywhere and at<br />
any time.<br />
Prediction 5: Succession Planning and Management Will Emerge as an Issue in<br />
Government Agencies, Academic Institutions, and Nonprofit Enterprises<br />
Traditionally, sectors of the economy other than business have been slow to<br />
adopt effective SP&M practices. Government agencies, academic institutions,<br />
and nonprofit enterprises have not typically attempted to identify replacements<br />
for key positions and have often relied on a talent-pool approach, which<br />
is more consistent with the laws, rules, regulations, political realities, and organizational<br />
cultures found in these economic sectors. Additionally, government<br />
agencies and academic institutions in particular have found systematic succession<br />
approaches difficult to use because of institutional policies or civil service<br />
regulations that require competitive searches, job posting, and preferences<br />
based on factors other than individual performance. Efforts to groom individuals<br />
in these settings have sometimes been prohibited rather than encouraged.<br />
One result has been long lead times between the appearance of a vacancy and<br />
the appointment of a successor.<br />
However, as a direct result of increasing turnover, increasing retirement<br />
rates, lagging salary and performance bonuses, and the greater rewards in a<br />
private-sector economy that makes the (relative) security of government service<br />
and academic appointments less appealing than they once were, I predict<br />
that government agencies and academic institutions will be forced to adopt<br />
more systematic succession practices. It is no longer effective to follow the<br />
business-as-usual approach of ‘‘calling for the list’’ of qualified individuals who<br />
have taken civil service exams or ‘‘conducting a national search’’ for each academic<br />
appointment by simply placing one advertisement in the Chronicle of<br />
Higher Education. The reason? There are few, if any, candidates on the civil
322 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
service ‘‘list’’ and few, if any, applicants sending in material to Chronicle advertisements<br />
for academic positions. This problem is particularly acute at senior<br />
levels in government and in educational institutions, where people do not<br />
want or need to move.<br />
It is important to understand that these problems take different shapes in<br />
government, educational institutions, and nonprofit organizations; hence,<br />
they require different solution strategies. Within each economic sector, differences<br />
in procedures also exist. For example, in government, human resource<br />
practices have not been the same among local, state, and federal agencies. In<br />
academic institutions, human resource practices have differed among government-supported<br />
and privately funded colleges and universities. In nonprofit<br />
enterprises, unlike in government agencies and academic institutions, the intrinsic<br />
satisfaction of the work has mediated the need to pay competitive salaries<br />
or provide competitive benefits.<br />
However, these three economic sectors do share similar challenges. Indeed,<br />
the key challenge is to find better ways to recruit, retain, motivate, and<br />
cultivate talent without sacrificing existing civil service laws and rules and without<br />
sacrificing merit-based employment in favor of political patronage, nepotism,<br />
or unlawful discrimination. There are no simple answers, and each<br />
institution needs to form a task force and focus attention on improving succession<br />
within the framework of its existing policies, procedures, and governmental<br />
laws, rules, and regulations. The challenge for SP&M program coordinators<br />
will be to find ways to adapt the approaches recommended in this book to the<br />
unique settings of government agencies, academic institutions, and nonprofit<br />
enterprises.<br />
Prediction 6: Succession Planning and Management Will Lead to an Increasing Policy of<br />
Organizational Openness<br />
Many organizations still do not share information about openings with the<br />
prospective successors for key positions. Some executives worry that such<br />
openness might lead to problems such as ‘‘greenmail’’ or the ‘‘crown prince<br />
dilemma.’’ Greenmail occurs when designated successors attract lucrative offers<br />
from other employers and then leverage them to achieve counteroffers<br />
from their current employers. The crown prince dilemma occurs when designated<br />
successors believe they are guaranteed advancement, rest on their laurels,<br />
and let their performance decline.<br />
Despite these potential problems, however, I predict that organizations<br />
will be forced to become more open about naming future successors. If they<br />
do not, they risk losing their high potentials to employers that are more open,<br />
make promises, and are forthcoming in offering attractive employment packages<br />
that include professional development opportunities.
323 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Prediction 7: Succession Planning and Management Will Increasingly Be Integrated with<br />
Career Development<br />
Career planning and management programs are usually planned by individuals.<br />
They are thus planned from the bottom up. Succession planning and management<br />
programs are usually planned by senior executives, and are thus<br />
planned from the top down. As described elsewhere in the book, the two work<br />
together and should be integrated.<br />
In the future, decision-makers will recognize how important it is to have<br />
both. Their synergistic power is greater than the sum of their individual parts.<br />
For that reason, organizations will revive company-sponsored career-planning<br />
and management programs to empower individuals with greater responsibility<br />
to prepare themselves for the future. This also serves as a double-check on,<br />
and verification of, replacement and succession plans.<br />
The challenge for SP&M program coordinators will be to find ways to<br />
integrate career and succession programs. Exhibit 14-7 lists some important<br />
characteristics of career planning and management programs. Exhibit 14-8<br />
provides an assessment sheet for you to structure your thinking about ways to<br />
integrate career planning and management programs with SP&M programs.<br />
Prediction 8: Succession Planning and Management Will Be Heavily Influenced by<br />
Concerns about Work/Family Balance and Spirituality<br />
A competitive economy has led many managers to devote more time to their<br />
work. In fact, the average number of hours per week that managers work has<br />
been on the rise. The same may well be true of other groups. That, in turn,<br />
has prompted many people to question their priorities. There is more to life<br />
than work, and they know it. Some seek more time with their families or others<br />
in their lives. Some look for religion or a deeper feeling about the meaning of<br />
life. These desires to balance work and life or achieve a greater sense of spirituality<br />
are major drivers for change. I predict that these will become issues of<br />
growing importance to organizational decision-makers. They will find that<br />
high potentials refuse additional responsibility if that responsibility requires<br />
too much personal sacrifice. This situation includes job assignments that<br />
prompt upheavals in their personal lives.<br />
The challenge for SP&M program coordinators will be to find ways to help<br />
high potentials balance their work responsibilities and their personal lives.<br />
This may require using time off as an incentive or giving people time away<br />
from work so they can balance work and personal life or pursue their spirituality.<br />
Prediction 9: Succession Planning and Management Will Focus Increasingly on Real-Time<br />
Talent-Development Efforts as Well as Strategic Efforts<br />
The manager has a role in developing talent. That is a daily responsibility,<br />
not a one-time-a-year-effort to be discussed, and managed, in a talent show.<br />
(text continues on page 328)
324 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 14-7. Important Characteristics of Career Planning and<br />
Management Programs<br />
Directions: Use this worksheet to rate your organization on how well it addresses<br />
important issues in career planning and management. For each characteristic of an<br />
effective career planning and management program listed in the left column below,<br />
rate how well you believe your organization rates on that characteristic in the right<br />
column. Use the following scale:<br />
1 Not at All Effective<br />
2 Somewhat Ineffective<br />
3 Somewhat Effective<br />
4 Effective<br />
Characteristic of a Career<br />
Rating<br />
Planning and Management<br />
Program<br />
Not at All Somewhat Somewhat<br />
The career planning and Effective Ineffective Effective Effective<br />
management program is: 1 2 3 4<br />
1 Focused on meeting spe- 1 2 3 4<br />
cific business needs or issues<br />
of the organization.<br />
2 Targeted on specific groups 1 2 3 4<br />
in the organization.<br />
3 Responsive to the organiza- 1 2 3 4<br />
tion’s unique corporate<br />
culture and ‘‘ways of doing<br />
things.’’<br />
4 Organized around a uni- 1 2 3 4<br />
fied model that can be easily<br />
and readily explained to<br />
such stakeholders as managers<br />
and workers.<br />
5 Based on a comprehensive 1 2 3 4<br />
approach that goes well<br />
beyond a ‘‘one-shot’’ approach<br />
to addressing career<br />
planning in the<br />
organization.
The Future of Succession Planning and Management<br />
325<br />
6 Involves, and thereby com- 1 2 3 4<br />
mands the ownership of, all<br />
key stakeholder groups<br />
(such as executives, managers,<br />
HR specialists, and<br />
workers).<br />
7 Well publicized to stake- 1 2 3 4<br />
holders.<br />
8 Evaluated both on how well 1 2 3 4<br />
it helps individuals achieve<br />
their goals and the organization<br />
achieves its goals.<br />
Score<br />
Add up the numbers in the column<br />
above and place the sum in the box<br />
below:<br />
Interpretation of the Score<br />
Score 1–8<br />
Score 9–16<br />
Score 17–24<br />
Score 25<br />
Your organization does not have a career planning<br />
and management program—or, if your<br />
organization does possess such a program, it is<br />
regarded as singularly ineffective. Grade it as<br />
an F.<br />
Your organization possesses a career planning<br />
and management program, but it is not regarded<br />
as effective or useful; only as somewhat<br />
so. Grade it as a C.<br />
Your organization’s career planning and management<br />
program is regarded as generally effective.<br />
Grade it a B.<br />
Your organization’s career planning and management<br />
program is regarded as highly successful<br />
and effective. Grade it an A.
326 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Exhibit 14-8. An Assessment Sheet for Integrating Career Planning and<br />
Management Programs with Succession Planning and Management<br />
Programs<br />
Directions: Use this worksheet to assess how well your organization’s career planning<br />
and management program is integrated with your SP&M program. For each<br />
characteristic of effective career and succession programs listed in the left column<br />
below, rate how well you believe your organization has integrated them in the right<br />
columns. Use the following scale:<br />
1 Not at All Integrated<br />
2 Somewhat Integrated—but Not Enough<br />
3 Well Integrated<br />
4 Very Well Integrated<br />
Characteristics of Effective<br />
Rating<br />
Career and<br />
Somewhat<br />
Succession Programs<br />
Integrated<br />
Both the career planning and Not at All —but Not Well Very Well<br />
management program and Integrated Enough Integrated Integrated<br />
the SP&M program: 1 2 3 4<br />
1 Are focused on meeting 1 2 3 4<br />
specific business needs.<br />
2 Are guided by program 1 2 3 4<br />
objectives that have<br />
been compared and integrated.<br />
3 Use work requirements 1 2 3 4<br />
or competencies as common<br />
denominators.<br />
4 Identify gaps between 1 2 3 4<br />
what people know or can<br />
do now and what they<br />
need to know.<br />
5 Clarify what career goals 1 2 3 4<br />
are sought by individuals.
The Future of Succession Planning and Management<br />
327<br />
6 Can, and often do, use 1 2 3 4<br />
full-circle, multirater assessments.<br />
7 Rely on individual devel- 1 2 3 4<br />
opment plans to narrow<br />
individual developmental<br />
gaps.<br />
8 Are evaluated. 1 2 3 4<br />
Score<br />
Add up the numbers in the column<br />
above and place the sum in the box<br />
below:<br />
Interpretation of the Score<br />
Score 1–8<br />
Score 9–16<br />
Score 17–24<br />
Score 25<br />
Your organization has not integrated career<br />
planning and management with SP&M.<br />
Your organization has somewhat integrated career<br />
planning and management with SP&M.<br />
However, they are not perceived as sufficiently<br />
integrated.<br />
Your organization has effectively integrated career<br />
planning and management with SP&M.<br />
Your organization has succeeded in achieving<br />
a very good integration between career planning<br />
and management with SP&M.
328 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
Organizational leaders can encourage that practice by rewarding managers for<br />
talent development, establishing mentoring programs (see the CD-ROM that<br />
comes with this book for a briefing on mentoring programs), and clarifying<br />
their role as managers in cultivating talent (see the CD-ROM that comes with<br />
this book for a briefing on the manager’s role in succession planning and<br />
management).<br />
Most development occurs on the job. The kinds of assignments that managers<br />
give their workers build their competencies. That is why experience is<br />
prized in organizations. That experience can be managed in such a way that<br />
workers can build their capabilities while meeting the real-time requirements<br />
of the organization. Managing that situation on a daily basis is the manager’s<br />
job. I predict that, in the future, organizational leaders will do a better job of<br />
building managers’ abilities to develop their workers’ talents in real time.<br />
Prediction 10: Succession Planning and Management Will Center as Much on Ethical and<br />
Value-Oriented Issues as on Competency-Based Issues<br />
Earlier in the book, I explained that, as a result of the Enron and other corporate<br />
scandals, leaders have recognized that performance cannot be gained at<br />
any price. It must be constrained by legal, moral, and ethical considerations. I<br />
predict that potential assessment will increasingly survey how well individuals<br />
comply with corporate codes of conduct, as well as meet other ethical, moral,<br />
and legal standards. Indeed, the mere appearance of impropriety can lead to<br />
onerous new regulations; consequently, organizational leaders will insist that<br />
individuals being considered for more management responsibility—or more<br />
demanding professional and technical responsibility—be measured against<br />
ethical, moral, and legal standards as well as competency-based (productivity)<br />
standards.<br />
Prediction 11: Succession Planning and Management Will Become More Fully Integrated<br />
with Selection Decisions<br />
Some competencies can be developed, but others must be selected for. As a<br />
result, it is essential that development and selection efforts be integrated. During<br />
competency identification efforts, HR professionals and others may need<br />
to pinpoint which competencies can be developed and which must be selected<br />
for.<br />
Prediction 12: Succession Planning and Management Will Focus on Leveraging Talent as<br />
Well as Developing It<br />
It is not enough to develop talent. Since some people are more productive or<br />
creative than others, the challenge is to leverage that ability to mentor, coach,<br />
and build the competencies of others. A challenge for organizational leaders<br />
is to find ways to match those who possess unique talents and strengths with
The Future of Succession Planning and Management<br />
329<br />
those who can stand to develop those competencies. Mentoring can occur<br />
between peers and not just between an individual and those at higher levels<br />
of the corporate hierarchy.<br />
Prediction 13: Succession Planning and Management Includes Alternatives to One-Hireat-a-Time<br />
Approaches, Such as Mergers, Acquisitions, or Takeovers, for the Purpose of<br />
Rapid and Broad-Based Talent Acquisition<br />
Organizations can acquire talent in more than one way, and one way to acquire<br />
talent is to hire it. A second way is to develop it. But there are alternatives.<br />
For example, yet another approach is to merge, acquire, or take over other<br />
organizations that enjoy talent that may be otherwise lacking in the organization.<br />
Think of it as a blood transfusion. A merger, acquisition, or takeover can<br />
inject a lot of talent at once into the organization.<br />
Of course, great care should be exercised in such ventures. If the corporate<br />
cultures of the two organizations are not compatible, talent will vanish<br />
through attrition. For that reason, organizational leaders should take steps to<br />
reassure the talented people in an organization being merged, acquired, or<br />
taken over that their futures are not in jeopardy. Without such due diligence,<br />
the high potentials may leave quickly, rendering the whole change effort a<br />
failure.<br />
Prediction 14: Succession Planning and Management Will Become Closely Linked to Risk<br />
Management and Concerns About Security<br />
The unexpected loss of talent can occur in more than one way. Accidents happen,<br />
but if the organization’s leaders take steps to minimize the impact of such<br />
accidents, they are acting prudently with the talent of the organization. It is for<br />
this reason that some organizations limit how many executives may travel on<br />
the same plane, in the same automobile, on the same bus, or in any other<br />
vehicle.<br />
Another issue to consider is what to do in the event of the sudden loss of<br />
an entire facility. It is no longer unthinkable that a whole city could be lost.<br />
Will the organization be able to function if the corporate headquarters is destroyed,<br />
as happened to several companies when the World Trade Center<br />
towers collapsed? Organizational leaders should thus do scenario planning to<br />
prepare for such catastrophic losses of human as well as physical assets.<br />
Prediction 15: Succession Planning and Management Will Become Associated with More<br />
than Management Succession<br />
Most people have traditionally associated succession planning and management<br />
with management succession. Moving up the organization chart has<br />
been a traditional focus, as has finding those who can be groomed for such
330 C LOSING THE ‘‘DEVELOPMENTAL G AP’’<br />
advancement. But advancement can mean more than management succession.<br />
For example, it can also mean advancement along a horizontal continuum of<br />
professional competence. 10<br />
Summary<br />
This chapter has offered fifteen predictions about succession planning and<br />
management. In the future, succession planning and management will: (1)<br />
Prompt efforts by decision-makers to find flexible strategies to address future<br />
organizational talent needs; (2) lead to integrated retention policies and procedures<br />
that are intended to identify high-potential talent earlier, retain that<br />
talent, and preserve older high-potential workers; (3) have a global impact; (4)<br />
be influenced increasingly by real-time technological innovations; (5) become<br />
an issue in government agencies, academic institutions, and nonprofit enterprises<br />
in a way never before seen; (6) lead to increasing organizational openness<br />
about possible successors; (7) increasingly be integrated with careerdevelopment<br />
issues; (8) be heavily influenced in the future by concerns about<br />
work/family balance and spirituality; (9) focus increasingly on real-time talentdevelopment<br />
efforts as well as strategic efforts, which center around the role<br />
of managers in daily work with their reports; (10) center as much around<br />
ethical and value-oriented issues as around competency-based issues; (11) become<br />
more fully integrated with selection decisions; (12) focus on leveraging<br />
talent as well as developing it; (13) include alternatives to one-hire-at-a-time<br />
approaches, such as mergers, acquisitions, or takeovers for the purpose of<br />
rapid and broad-based talent acquisition; (14) become closely linked to risk<br />
management and concerns about security; and (15) become associated with<br />
more than management succession.
A P P E N D I X<br />
I<br />
FREQUENTLY ASKED QUESTIONS<br />
(FAQs) ABOUT SUCCESSION<br />
PLANNING AND MANAGEMENT<br />
1. What is succession planning?<br />
Simply stated, succession planning is a process of developing talent to meet<br />
the needs of the organization now and in the future. Every time a manager<br />
makes a work assignment, he or she is preparing someone for the future because<br />
he or she is building that worker’s ability. Work experience builds competence,<br />
and different kinds of work experience build different kinds of<br />
competence.<br />
2. How is succession planning different from replacement planning?<br />
Replacement planning is about finding backups to fill vacancies on an organization<br />
chart. But succession planning is about grooming the talent needed for<br />
the future. They are related but different activities.<br />
3. Why is succession planning needed?<br />
Organizational leaders need to think about aligning their staffing and leadership<br />
needs with the organization’s future strategic objectives. If they do not<br />
take action to establish an effective succession planning and management program,<br />
they are likely to fall victim to the so-called like me problem. That is the<br />
dilemma in which people are biased to pick other people like themselves,<br />
viewing them more favorably. It is not intentional discrimination but, rather,<br />
human nature—to see the world through our own lenses. For that reason,<br />
men tend to prefer men, women prefer women, engineers prefer engineers,<br />
and so forth. The more ways that you are like your boss, the more likely your<br />
boss is to regard you favorably. Since there is a tendency to want to ‘‘clone’’<br />
job incumbents for successors, organizations must take steps to counteract<br />
that built-in bias, for the simple reason that the job incumbent of today, while<br />
331
332 A PPENDIX I<br />
perhaps perfectly suited for the business environment now, may not be suitable<br />
for the business environment of the future. For that reason, organizational<br />
leaders must take steps to determine how many and what kind of people<br />
are needed for the future so that succession plans can pick winners who can<br />
help the organization realize its strategic objectives.<br />
4. Why are organizational leaders interested in succession planning<br />
and management now?<br />
Many organizations are experiencing the effects of aging workforces that are<br />
putting them at risk of losing their most experienced workers to retirement.<br />
At the same time, concerns about terrorism have raised the stakes on prudent<br />
planning to ensure that leaders, and other key workers, have backups in case<br />
they are needed. Finally, years of downsizing and other cost-cutting measures<br />
have reduced the internal bench strength of many organizations so that it is<br />
more difficult to find internal replacements. Since most managers do not want<br />
to wait a long time to fill critical positions, and organizations have downsized<br />
such that external talent is not readily available, many organizational leaders<br />
are taking steps now to ‘‘grow their own talent,’’ particularly for those hardto-fill<br />
internal positions that require extensive, unique knowledge of ‘‘the way<br />
we do things here.’’<br />
5. What are the essential components of a succession planning<br />
program?<br />
Think about the following:<br />
▲ The Purpose of the Program. Why do you need it? (Do not assume that<br />
all executives of the organization will just naturally share the same objectives.<br />
They will not. Some will want some things; others will want<br />
others. But confused goals will not lead to effective results.)<br />
▲ The Measurable Objectives of the Program. What measurable results are<br />
desired from it over time?<br />
▲ The Competencies Needed for Success Now. What kind of person is<br />
needed to be a successful performer in every department and at every<br />
organizational level?<br />
▲ The Way Those Competencies Are Measured. How well is the organization’s<br />
performance management system measuring present competencies?<br />
(That is needed because we only want to promote those who are<br />
succeeding in their current jobs.)<br />
▲ The Competencies Needed for Success in the Future. What kind of person<br />
is needed to be a successful performer in every department, and at
Frequently Asked Questions (FAQs) About Succession Planning and Management<br />
333<br />
every organizational level in the future, if the organization is to realize<br />
its strategic objectives?<br />
▲ The Way the Organization Assesses Potential. How do we know that<br />
someone can succeed at a future, higher level of responsibility if we<br />
have never seen him or her perform it? (Think of this as measuring<br />
performance against future, as yet unperformed, job challenges.)<br />
▲ Narrowing Gaps. How do we narrow gaps between the person’s present<br />
job requirements and present performance and his or her future targets<br />
or possible future levels and what he or she needs to know or do to be<br />
ready for that higher-level or more difficult responsibility?<br />
▲ Evaluating Results. How do we know that our efforts to narrow gaps<br />
are working and that the succession program is achieving its mission<br />
and accomplishing its measurable objectives?<br />
6. How does an organization get started establishing and<br />
implementing a succession planning and management program if it has<br />
not had one before?<br />
Start by ‘‘making the business case,’’ which means ‘‘showing a compelling<br />
business need to establish and implement a succession program.’’ (Some people<br />
say ‘‘find a burning platform.’’) Based on that case, establish the goals to<br />
be addressed by the program. How exactly do you make the business case?<br />
Here are some possibilities:<br />
▲ Conduct a study of the projected retirements in your organization by<br />
going to your payroll system and asking for a report that shows the<br />
projected retirement dates of everyone on the payroll. Then dig deeper<br />
to see projected retirement dates by job level (position on the organization<br />
chart), geographical location, department, job code, and any other<br />
specifics that may be important to your organization. Then do the same<br />
work by examining projected retirement dates over rolling three-year<br />
periods. Remember that some people will not retire when they are eligible,<br />
but you are simply assessing risks.<br />
▲ Ask executives what would happen if the whole senior team was wiped<br />
out at once in a plane crash, car accident, or bombing of corporate<br />
headquarters.<br />
▲ Ask each manager how he or she would advise handling his or her sudden<br />
loss due to death, disability, or accident. Who is the backup, and<br />
how did he or she determine that person?<br />
Of course, you may be able to come up with some other ways to build a business<br />
case, depending on the unique business conditions that your organization<br />
faces. But start with a persuasive argument, since succession planning is
334 A PPENDIX I<br />
one of those things like buying burial plots that everyone knows should be<br />
done but wants to put off doing. (In fact, the old joke is that succession is<br />
something we are too busy to do when business is good and too expensive to<br />
do when business is bad. The result is that we never do it.)<br />
7. What’s the return-on-investment for succession planning and<br />
management programs?<br />
Nobody knows the average ROI for succession planning and management programs.<br />
Even best-in-class companies have not effectively measured it. (By the<br />
way, what is the ROI of your accounting department?) Determine ROI by starting<br />
with the measurable objectives to be achieved by the program. Find out<br />
what it costs—and how long it takes—to fill vacancies today. Then find out<br />
what it costs—and how long it takes—to fill vacancies after the succession<br />
planning and management program is up and running. Use these figures to<br />
show the costs and benefits of an SP&M program.<br />
8. What are the most common problems that organizations experience<br />
in getting started on a succession planning and management program?<br />
Common problems in getting started on a succession planning and management<br />
program include:<br />
▲ Defining it as an HR problem rather than as a responsibility shared by<br />
the board of directors, senior leadership team, managers at all levels<br />
of the organization, and even individual workers. Everyone has some<br />
responsibility to groom talent to meet the organization’s future needs.<br />
▲ Understaffing the effort. A good succession program requires time and<br />
effort. Someone must coordinate that. It cannot be ‘‘completely outsourced.’’<br />
Consultants can help, but they cannot ‘‘do it for you.’’ Managers<br />
cannot abdicate responsibility—or accountability.<br />
▲ Establishing confused or overly ambitious goals. If the organization’s<br />
leaders do not focus the succession effort on specific, and measurable,<br />
objectives to be achieved, the succession program will lack goal clarity<br />
and resources will be wasted in pursuing many confusing, overlapping,<br />
and perhaps conflicting goals. You have to be clear about what you want<br />
before a program can be established to accomplish it.<br />
▲ Failing to hold people accountable. This is perhaps the biggest problem<br />
facing all succession programs. What happens if this year’s individual<br />
development plans are not met by an individual? What happens if the<br />
senior executive in charge of a division does not meet measurable talent-development<br />
objectives for his or her division? These questions center<br />
on accountability. Different organizations solve the problem in
Frequently Asked Questions (FAQs) About Succession Planning and Management<br />
335<br />
different ways, depending on corporate culture. But the real question<br />
is, ‘‘How do we arrange consequences for building talent or failing to<br />
build talent?’’ ‘‘How does talent development stack up against meeting<br />
the numbers for this week, month, quarter, or year, and what do we<br />
do if we are making profits or sales but not grooming people for the<br />
future?’’<br />
9. What are the biggest benefits that organizations experience from a<br />
succession planning and management program?<br />
If an organization has established an effective succession planning program,<br />
organizational leaders should expect that:<br />
▲ It will take less time and expense to source talent to fill vacancies because<br />
the talent has already been identified and prepared.<br />
▲ People-development efforts have been aligned with the organization’s<br />
strategic objectives so that the right people will be available at the right<br />
times and in the right places to meet the right objectives.<br />
▲ The organization is prepared to deal with sudden, catastrophic losses<br />
of key people.<br />
10. What is the role of the corporate board in a succession planning<br />
and management program? CEO in a succession planning and<br />
management program? What is the senior management team’s role?<br />
What is the HR department’s role? What is the individual’s role?<br />
▲ The board should ensure that an effective succession planning and management<br />
program exists and is actually working effectively.<br />
▲ The CEO is personally responsible for ensuring that an effective succession<br />
planning and management program exists and works effectively. If<br />
he or she does not, it is like a pilot who is not flying the airplane. If the<br />
plane crashes, who is responsible?<br />
▲ Senior managers are like the co-pilots of the airplane. Each is responsible<br />
for establishing talent development objectives for his or her own<br />
division or department and then meeting those objectives.<br />
▲ The HR department provides support for the effort by arranging for the<br />
policies, procedures, technology, and other support to help ensure that<br />
the ‘‘plane flies in the right direction.’’ Think of the HR vice president’s<br />
role as akin to the navigator of the plane. He or she gives advice to the<br />
pilot where and how to fly and provides on-the-spot advice about how<br />
to deal with unique problems, situations, or challenges.
336 A PPENDIX I<br />
▲ Department managers are responsible for attracting, identifying, developing,<br />
and retaining talent for their respective departments. They<br />
should realize that they are responsible—and accountable—for both<br />
‘‘making the numbers’’ and ‘‘grooming talent to meet the organization’s<br />
future requirements.’’<br />
▲ Individuals are responsible for knowing what they want out of life, their<br />
careers, and the organization. They are also responsible for developing<br />
themselves for the future. While there is nothing wrong with individuals<br />
‘‘wanting to stay where they are’’—particularly if that stems from a<br />
work/life balance decision—individuals have a responsibility to let people<br />
know what their objectives are so long as it does not hurt their own<br />
interests and possible future employability.
A P P E N D I X<br />
I I<br />
CASE STUDIES ON SUCCESSION<br />
PLANNING AND MANAGEMENT<br />
The case studies in this Appendix are meant to represent a broad range of<br />
succession planning and management programs drawn from previously published<br />
accounts. They represent both best-practice and typical-practice cases.<br />
Read them and note the similarities—and the differences—that exist in succession<br />
planning and management efforts across a spectrum of organizations.<br />
Case 1: How Business Plans for Succession:<br />
Matching Talent with Tasks<br />
With 61,000 workers in more than ninety countries, Dole Food Company Inc. has<br />
talent all over the world. Only a few hundred of those employees are in top<br />
management at the 151-year-old company headquartered in Westlake Village,<br />
California, which produces and markets fruits, vegetables, and flowers. Trouble<br />
is, Dole doesn’t have comprehensive knowledge of who these managers are or<br />
what they can do.<br />
To be sure, business-unit leaders know their own direct reports well—their<br />
strengths, weaknesses, experience, and career goals. The problem is, these leaders<br />
have no way to share that knowledge with other business units. If a key job<br />
opens up in North America, the business-unit leader wouldn’t know if the perfect<br />
candidate worked in another Dole unit in South America. Dole has no way to<br />
match its top managerial talent with its executive needs.<br />
But that is changing. The highly decentralized company is launching a succession<br />
planning process, supported by Web-based software, through which<br />
Dole executives hope to rectify their inability to promote the best and the brightest<br />
across the corporation.<br />
‘‘We are looking to execute an organized process where we will identify<br />
weaknesses and strengths of our people and build plans to deal with that,’’ says<br />
George Horne, Dole’s vice president of administration and support operations.<br />
Source: Bill Roberts, ‘‘Matching Talents with Tasks,’’ HR Magazine 47:11 (2002), 91–93. Used with<br />
permission of HR Magazine.<br />
337
338 A PPENDIX II<br />
‘‘We also want to identify areas where we will need to bring in some people from<br />
outside to fill some gaps at the top.’’<br />
Knowing Your People<br />
Succession planning used to mean that a company president hoped his oldest<br />
child would join the family business and replace Dad someday. If not the oldest,<br />
then any child would do. Today, succession planning—also called workforce<br />
planning or progression planning—means having the right person in the right<br />
place at the right time for the right job, says Ren Nardoni, senior vice president at<br />
Pilat NAI, a Lebanon, New Jersey, subsidiary of Pilat Technologies International<br />
Ltd. of London. It means knowing your people; knowing their strengths, experience,<br />
and career goals; and knowing where they need development. Succession<br />
planning helps HR and managers know what to do if a position becomes vacant.<br />
‘‘You’re looking for the vulnerabilities of the organization,’’ he says.<br />
Succession planning has grown more important since the 1980s and picked<br />
up steam in the 1990s. These days, experts say, most Fortune 500 companies take<br />
succession planning seriously, and many smaller companies embrace it. Marc<br />
Kaiser, a consultant with Hewitt Associates in Lincolnshire, Illinois, says savvy<br />
companies recognize that they must be prepared to tackle the leadership gap<br />
created by retiring baby boomers. The ability to easily automate succession planning<br />
using the Web also drives interest. ‘‘It is easier now, and that’s one reason<br />
people are doing it,’’ he says.<br />
Most companies that adopt succession planning automate it with software.<br />
Nardoni estimates that 50 percent to 60 percent of the Fortune 500 and 30 percent<br />
of the largest 2,500 U.S. companies have installed succession planning systems,<br />
either stand-alone software or the succession-planning module in their HR management<br />
system (HRMS). ‘‘Our average client starts with succession planning for<br />
between 150 and 250 positions. The minute you get above 50 to 75 positions, it<br />
becomes a pain in the butt on paper,’’ he says.<br />
Government agencies, such as the Federal Aviation Administration, also embrace<br />
succession planning, Nardoni says, because they have to plan for people<br />
moving in and out and retiring. However, the government’s succession planning<br />
initiatives don’t have the same intensity as those of the Fortune 500, he adds.<br />
Succession planning correlates positively with the bottom line, says Nardoni.<br />
Kaiser points to a 2002 Hewitt study, ‘‘Top 20 Companies for Leaders,’’ that<br />
shows that companies with reputations as good places to work have stronger<br />
succession planning and commit more resources to it, including the CEO’s time.<br />
Hewitt surveyed some 348 HR executives and CEOs at 240 publicly held companies<br />
on various leadership topics, identifying companies that succeed in attracting,<br />
developing, and retaining leaders, and noting the practices that influenced<br />
their success.<br />
Dole’s Culture Change<br />
Succession planning was one of several corporate-wide initiatives Dole launched<br />
in the past 18 months to decrease decentralization in an attempt to improve the
Case Studies on Succession Planning and Management<br />
339<br />
bottom line, Horne says. The company was No. 353 in the Fortune 500 in 2002<br />
with revenues of more than $4.6 billion.<br />
Historically, Horne explains, Dole’s seven business units were so autonomous<br />
that corporate wasn’t much more than a holding company. When Larry<br />
Kern became president in February 2001, he set out to keep as much decentralization<br />
as made sense while adding some corporatewide accountability and<br />
processes.<br />
Succession planning (Dole calls it progression planning) was one such<br />
change. The process itself would require a change of culture and could become<br />
an agent for further culture change. ‘‘The idea of succession planning is contrary<br />
to being highly decentralized,’’ says Sue Hagen, vice president of HR for North<br />
American operations, who led the effort.<br />
Although Dole’s annual turnover rate among top management is less than 10<br />
percent, succession planning was on its radar screen for years, says Hagen. ‘‘Talent<br />
is scarce. Time and cost to ramp someone up in our business is difficult and<br />
costly. It makes going outside more difficult.’’<br />
Hagen talked informally to all corporate executives, and the leaders and staffs<br />
of each business unit, to generate consensus for succession planning for corporate<br />
positions—corporate officers, business unit presidents and their direct reports.<br />
The initial group would be about 100, she says. Next year, another few<br />
hundred will be included.<br />
The reaction was mostly positive, Hagen says. ‘‘We got a range of responses.<br />
It was more an issue of education, especially for the businesses based outside the<br />
United States. We had to educate them to what the objectives were going to be<br />
and why we do it centrally rather than decentralized.’’<br />
Senior management approved the project, and Kern is especially enthusiastic,<br />
Hagen says. ‘‘He wants us to maximize the internal talent we have.’’<br />
Defining the Processes<br />
Hagen’s next step was to hold a series of in-depth interviews with the executives<br />
to determine which succession planning processes were needed and how often<br />
they should be conducted. The goal was to reflect as much of their thinking as<br />
possible. ‘‘One division wanted to review succession plans on their people six<br />
times a year. Another didn’t want to do it at all,’’ she says. Hagen compromised:<br />
Succession planning will be conducted twice a year. She also identified four competencies<br />
on which everyone would be evaluated: accountability, business acumen,<br />
multifunctionality (cross-training), and vision/originality.<br />
Kaiser and another Hewitt consultant, Lisa Labat, assisted Hagen with the<br />
Dole project. ‘‘One of the first questions we ask organizations is, ‘What are the<br />
business needs?’ ’’ says Labat. They also ask, ‘‘What is your business today and<br />
where are you going to be taking it? What does that mean for the talent you need<br />
in place, especially at the top?’’<br />
Hagen did not want software to dictate the process, nor did she want to create<br />
a process and then search for software that exactly fit. Instead, she started to look
340 A PPENDIX II<br />
at software while developing the process itself, looking for a package that is<br />
flexible, needs little customization, and is easy to learn. The Hewitt consultants<br />
pointed her toward several products but did not participate in the selection.<br />
Hagen also networked with other HR professionals who had adopted successionplanning<br />
software.<br />
Many HRMS software suites have an optional succession-planning module,<br />
but neither Dole nor its business units have an HRMS. Since most employees are<br />
farm or factory workers, there is not much need for the detailed information an<br />
HRMS provides, says Hagen. ‘‘It would be overkill.’’ In a way, the succession<br />
planning software Dole adopted will become a mini-HRMS for top personnel,<br />
she adds.<br />
Hagen also wanted an application service provider (ASP) model. Outsourcing,<br />
including payroll, is common at Dole. Hagen didn’t want to own and support<br />
technology, and she didn’t want the small corporate information technology staff<br />
to have to work on it.<br />
About 20 percent of the requests for proposals that Pilat NAI sees request an<br />
ASP model, and 50 percent want information about that option, Nardoni says. He<br />
expects 25 percent or more of his business to be ASP-based in the next two years.<br />
Hagen identified products from nine companies and asked for presentations<br />
from four. She chose Pilat NAI’s succession planning software because it was<br />
cost-effective and flexible. The inner workings of the system are invisible to Dole.<br />
Pilat NAI runs the software on one of its servers for a monthly fee based on<br />
the number of users who will be system administrators plus a flat fee for the first<br />
1,000 records stored on the software. Hagen serves as vendor manager, and a<br />
coworker handles day-to-day contact with Pilat NAI regarding development,<br />
troubleshooting, and user issues. The contract spells out confidentiality and firewall<br />
protection for the data.<br />
Hagen began the project in March, selected the software in April, and began<br />
installing in May. The project began to roll out in September, and Dole expects<br />
to produce the first reports for management by the end of this year.<br />
A Plan for Each Manager<br />
Installation required less than 10 percent customization and did not require the<br />
full-time involvement of anyone at Dole. One HR person pulled data from the<br />
payroll system and fed it into the succession-planning database, but that was a<br />
onetime task. The basic data gives users a starting point.<br />
The users—top managers—access the program from the Web with a password.<br />
They fill out a resume, including career interests, and note any mobility<br />
restrictions. They assess themselves on the four competencies. When they are<br />
done, the system automatically notifies their manager, who does an assessment<br />
and indicates whether he or she thinks the individual could be promoted. The<br />
manager also assesses overall potential and the risk of losing the user. This assessment<br />
then goes automatically to the division head, then the divisional HR<br />
director, then Hagen.
Case Studies on Succession Planning and Management<br />
341<br />
All assessments will be pulled together in a report, to be reviewed by Kern,<br />
Horne, legal counsel, and the chief financial officer. Hagen will use the information<br />
to create a career development plan for each individual, including seminars<br />
she’ll organize. She’ll also direct business unit leaders to potential candidates in<br />
other units when they have appropriate openings.<br />
‘‘The beauty is, for the first time we’ll have a database that ties together these<br />
talent metrics and can serve as a clearinghouse for people available for opportunities,’’<br />
Hagen says. The system will also help Dole identify where it has talent<br />
gaps so it can better recruit from outside, adds Horne.<br />
Dole’s corporate management hopes all business units will eventually adopt<br />
similar succession planning processes and software, Hagen says. ‘‘I view this as<br />
a pilot, a very visible pilot,’’ she says. ‘‘To get the buy-in of individual business<br />
units, we’ll show them that this was adopted by their senior management and<br />
that it works.’’<br />
Case 2: How Government Plans for Succession:<br />
Public-Sector Succession—A Strategic Approach to Sustaining Innovation<br />
In the public and private sectors alike, demand for change is the one constant.<br />
There is a loud call for leaders who can accommodate change personally and<br />
who can initiate and drive broad changes in their organizations. These demands<br />
make sense but raise a troubling issue. By relentlessly insisting on change, are<br />
we risking the loss of innovations recently realized? This is a particularly salient<br />
question for public-sector agencies, which are currently under attack from all<br />
sides.<br />
In this article, I assert that while change must be on the agenda of any public<br />
agency for its very survival as well as for the public good, it is just as important<br />
to ensure that gains achieved in one administration be given a fair assessment<br />
and not be jettisoned, without review, to the god of change. Indeed, the importance<br />
of ‘‘sustained innovation’’—essentially keeping change alive—is an increasing<br />
challenge for public agencies. 1<br />
Will innovative programs created as a response to social problems be allowed<br />
to live out their ‘‘natural’’ lives, or will they be killed off before their time, independent<br />
of performance and outcomes? This issue is particularly acute in the<br />
transition between elected or appointed government officials—especially in a<br />
highly politicized environment that limits government’s capacity to continue efforts<br />
across administrations. Moreover, one critical tool available to the private<br />
sector, succession planning, is rarely used by public agencies because the executive’s<br />
fortunes are generally tied to a particular administration. Many public-sector<br />
leaders have devised strategies for continuing efforts across administrations.<br />
Source: Ellen Schall, ‘‘Public-Sector Succession: A Strategic Approach to Sustaining Innovation,’’<br />
Public Administration Review 57:1 (1997), 4–10. Used with permission of Public Administration<br />
Review.
342 A PPENDIX II<br />
Some establish support beyond the government, for example, from the business<br />
community or other local ‘‘elites’’; some obtain early bipartisan political support.<br />
Still others avoid program demise by identifying a champion linked to the incoming<br />
administration so as to have a voice ‘‘inside,’’ or by creating wide support<br />
within the agency (and other agencies) so that the new governor or mayor hears<br />
a consistent message. Finally, some administrators have succeeded in winning<br />
national recognition for their innovations so that discontinuing them is a perceived<br />
political risk.<br />
As important as these approaches are, innovations also can be sustained by<br />
cabinet secretaries or agency heads engaging in succession planning, even<br />
though these people are as vulnerable to shifting political winds as their superiors.<br />
In fact, this level, where so much actual and potential innovation resides,<br />
represents a real opportunity for both preserving innovations and transferring<br />
them to subsequent regimes—provided the agency heads can, and will, extend<br />
their strategic vision beyond their own tenure. It is no longer sufficient to achieve<br />
change, difficult as it may be. The public-sector leader must learn to consider not<br />
only what can be but what will be, how what is achieved can be sustained. This<br />
requires future-oriented strategic thinking, which I argue must include attention<br />
to succession planning. Succession planning done well involves preparing the<br />
agency for a change in leadership, but it also includes assessing what has been<br />
valuable and how that can be preserved and transferred to the subsequent regime.<br />
It is this strategic, sustaining innovation aspect of succession planning that<br />
I focus on in this article.<br />
First, I shall look at how research on succession in the private sector is both<br />
helpful and hindering for public-sector succession planning, especially in the<br />
realm of sustaining innovation. I will also examine the research that exists in the<br />
public sector and its relevance. I describe a series of constraints or barriers that<br />
must be overcome if succession is to be taken seriously in public-sector organizations.<br />
I present a case study drawn from my experience as Commissioner of the<br />
New York City Department of Juvenile Justice, where I served for seven years<br />
and managed my succession in a way that enabled the innovations that had been<br />
put in place to be retained and further innovations based on these to be created.<br />
I discuss the four interconnected strategies devised to implement this succession<br />
and show how they can help both in overcoming barriers to taking succession<br />
seriously and in shaping the legacy of a public-sector organization.<br />
Succession and Succession Planning: A Brief Review of the Literature<br />
Most articles on succession and succession planning begin with a familiar lament:<br />
executive-level transition merits more attention than it gets in the literature<br />
(Rainey and Wechsler, 1988; Greenblatt, 1983; Gordon and Rosen, 1981; Austin<br />
and Gilmore, 1993). The relatively few authors who address the issue in the context<br />
of the public sector point out the even more serious gap on that side. The<br />
National Academy of Public Administration (NAPA), anticipating significant re-
Case Studies on Succession Planning and Management<br />
343<br />
tirements in the Federal Senior Executive Service beginning in 1994, began a<br />
serious look at succession planning in the early 1990s (NAPA, 1992). The NAPA<br />
researchers also remarked on the lack of attention to public-sector transitions. In<br />
an article written in 1993, although published later, Farquhar refers to the ‘‘rapidly<br />
expanding’’ literature on succession (Farquhar, 1996), and in 1995, she edited a<br />
special edition of Human Resource Management on the topic of leadership transitions<br />
(Farquhar, 1995).<br />
Both the problem in the public sector and its consequences have been described<br />
by Rainey and Wechsler (1988), who argue, ‘‘Whether one adopts a broad<br />
or more specific approach to organizational performance and productivity, effective<br />
transition management is essential to achieving positive results.’’ At the same<br />
time, the authors characterize executive transitions at all levels of government as<br />
‘‘marked by serious deficiencies in preparation, orientation, and communication’’<br />
(p. 45). However, while noting that some research exists on the political management<br />
of transition at the presidential and gubernatorial levels, the authors do not<br />
make use of the broader literature on transition and executive succession that<br />
would help guide an analysis of transition and change at the agency level—<br />
particularly within, not between, administrations.<br />
Various frameworks help conceptualize transition generally and the issues<br />
that surround it. The most useful begin before the actual succession event (Rainey<br />
and Wechsler, 1988; Greenblatt, 1983; Gordon and Rosen, 1981) and draw attention<br />
to what Rainey and Wechsler call the objective as well as subjective domains.<br />
But there is something missing even here. Greenblatt, for example, begins with<br />
what he terms the ‘‘anticipatory’’ stage but fails to capture the opportunity for a<br />
strategic view of this moment. Gordon and Rosen point out the need to attend to<br />
the time before the new leader arrives, but they still start with the new leader’s<br />
being chosen. Rainey and Wechsler describe transition as a major ‘‘strategy influencing’’<br />
event. This stops short of grasping transition’s full potential to make, not<br />
just influence, strategy. They write as if the departing leader has no role in shaping<br />
the transition.<br />
Although the literature gives some attention to the person leaving (Kets de<br />
Vries, 1988), more is given to the new leader and his or her dilemmas (Gouldner,<br />
1950; Greenblatt, 1983; Gilmore and Ronchi, 1995). In a particularly interesting<br />
article on leadership during interregna, Farquhar (1991) examines 43 Legal Service<br />
Corporations and analyzes the dynamics and impact of interim administrations.<br />
Other research distinguishes the important dimensions in which cases differ,<br />
arguably the most significant being the reason for departure. Not all CEO successions<br />
are equally interesting for theorists. Fredrickson, Hambrick, and Baumrin<br />
(1988) suggest that firings and voluntary departures offer the most meat because<br />
only then are real choices made; their work focuses on dismissals. Austin and<br />
Gilmore (1993) also highlight the importance of the reason for transition. They<br />
outline various reasons and cite previous works on each—retirement, term expiration,<br />
protest, reassignment, illness, or death—but select for case analysis the
344 A PPENDIX II<br />
leader who chooses to move on to a new opportunity. They are especially helpful<br />
in suggesting explicit strategies the departing leader can use to manage the exit<br />
process. On the topic of contemplating one’s successor, Austin and Gilmore<br />
(1993, p. 52) comment, ‘‘It is striking how many executives have known that they<br />
will be leaving within a year or two and have not found a way either to focus on<br />
leadership succession or to expand the talent to help the organization cope with<br />
a change.’’<br />
This is the territory that my article attempts to plumb further: the voluntary<br />
decision to leave, planned and discussed in advance, as opposed to the sudden<br />
and traumatic leaving that Farquhar (1996) has written about and strategically<br />
framed.<br />
Taking Succession Seriously<br />
It is a serious matter that succession planning in the public sector, especially<br />
below the presidential level, has not, until recently, received much attention in<br />
the literature. However, a more critical issue is that it has not received much<br />
attention in the actual world of public service. This omission, in part, reflects the<br />
fact that leaders in the public sector have themselves not taken the issue of succession<br />
planning seriously, except for obvious concerns like elections and mandates.<br />
Doing strategic executive searches in the public sector is difficult, but that<br />
is a secondary factor. What is primary, I suggest, is changing public-sector culture<br />
so that focusing on succession and beyond becomes a hallmark of strategic leadership.<br />
The public-sector executive must begin to consider the end right at the<br />
beginning. The pull to get consumed by the demands of the present is strong but<br />
must be resisted. Creating a picture of what the leader wants to leave behind will<br />
actually help focus strategic choices as well as direct the leader’s attention to<br />
often overlooked strengths of the existing organization.<br />
Public-sector leaders must surmount four types of barriers to taking succession<br />
seriously: (1) The leader’s reluctance to take up the succession ‘‘task’’; (2)<br />
The assumption that succession issues are beyond the scope of the leader’s work;<br />
(3) Confusion about how the succession task should be framed—is it a matter of<br />
replacing oneself or of strategic ‘‘positioning?’’ and (4) Lack of information about<br />
how to take up the task—how to plan for succession in the midst of a shifting<br />
political environment and given regulatory and political constraints.<br />
Reluctance to ‘‘Deal’’ with Succession<br />
In The Hero’s Farewell, a study of 50 prominent, retired, private-sector CEOs,<br />
Jeffrey Sonnenfeld (1988) discusses the ‘‘heroic self-concept of the departing<br />
leader’’ (p. 3) as having a great influence on succession. Part of that self-concept<br />
is a ‘‘sense of heroic mission, a feeling that one has a unique role to fill and that<br />
only the hero is capable of carrying out the responsibilities of the job.’’ Sonnenfeld<br />
describes this attitude as ‘‘a barrier to the hero’s exit’’ (p. 62). The greater the<br />
frustration with the heroic mission, and the more attached to the ‘‘heroic stature’’
Case Studies on Succession Planning and Management<br />
345<br />
of the office (another aspect of the heroic self-concept), the longer the CEOs<br />
Sonnenfeld studied stayed on the job (p. 69).<br />
Sonnenfeld groups CEO attitudes toward departure into four categories ranging<br />
from complete reluctance to willingness. Monarchs will not leave voluntarily<br />
and either die in office or are overthrown. Generals leave with great reluctance<br />
and then plot comebacks. Ambassadors leave gracefully and maintain amicable<br />
ties to their old organizations. Governors are pleased to serve only a limited time<br />
and then leave to do something else, maintaining little contact with the company.<br />
Monarchs and generals are clearly the most averse to acknowledging that the end<br />
draws nigh, and that factor affects the likelihood of a succession planning process<br />
occurring at all.<br />
Manfred F. R. Kets de Vries (1988) also writes about the reluctance of corporate<br />
CEOs to tackle succession planning. As does Sonnenfeld, he focuses on the<br />
retirement-age CEO in the private sector who has to overcome the ‘‘hidden fears<br />
that plague us all’’ (p. 57) to face stepping down.<br />
Drawing direct parallels between public- and private-sector research on succession<br />
must be done carefully. Because the public sector has more short-term<br />
leaders than institution builders, one must take particular care in using the categories<br />
Sonnenfeld has illuminated. Nevertheless, the public sector has its share<br />
of reluctant-to-leave leaders. Certainly there are generals who believe, against all<br />
evidence, that there is some chance they can survive even an unfriendly transition<br />
of mayor or governor and thus are averse to planning for a succession they do<br />
not want to happen. One also finds monarchs who are so imbued with their<br />
heroic sense of mission that they find it unthinkable that they ever would be<br />
forced to depart, no matter how unreasonable that belief may be. They therefore<br />
resist any attempt to broach the idea of succession, much less the planning for it.<br />
The public sector has more than its fair share of governors, too. They seem<br />
an unlikely group on whom to depend for succession planning. Their investment<br />
in the agency is often minimal, as is the agency’s in them. The hope for planning<br />
must lie with the ambassadors, primarily by encouraging them to enlarge the<br />
scope of their vision to include the task of succession planning.<br />
Assuming That Succession Is Beyond the Scope of the Leader’s Work<br />
Beyond personal reluctance lies the power of the group norm. The public sector<br />
is focused on the here-and-now, and authority is thought to be given, not taken<br />
up.<br />
Both the private and not-for-profit sectors have a clearer focus on the future.<br />
While the American business community is sometimes criticized for attending too<br />
much to the short term, as compared to the Japanese, for example, it is clear that<br />
there are mechanisms and institutionalized roles within the private sector to carry<br />
the perspective of the future: the stockholders and the board of directors, if not<br />
the CEO. Regina Herzlinger (1994) has argued that this focus on the future and<br />
‘‘intergenerational equity’’ is among the most significant responsibilities of the<br />
not-for-profit board. These future-oriented mechanisms and roles are weak or
346 A PPENDIX II<br />
nonexistent in the public sector, certainly at the agency level. Those outside government<br />
often call mayors and governors to task for budget wizardry that risks<br />
future crisis for present peace. If agency heads are held accountable at all, it is<br />
for their management of day-to-day problems, not their investment in the future.<br />
The literature’s lack of attention to accountability for the future both underlines<br />
and reinforces the current situation. As more researchers turn their attention<br />
to this issue, it is possible there may be some shift in the public’s expectations. It<br />
is likely, though, that it will need some greater push than that. Teaching in both<br />
graduate school and executive education programs can have a great impact. Just<br />
as faculty try to set a standard that expects strategic leadership from public-sector<br />
executives and discourages a narrow focus on fighting fires, teachers can extend<br />
their understanding of what it takes to be strategic. Faculty can ‘‘raise the bar’’<br />
and draw a new picture of what excellence in the public sector demands: an<br />
attention to the future as well as to the present.<br />
Confusion About the Succession ‘‘Frame’’<br />
Succession planning, even in the private sector, has all too often been regarded<br />
as a replacement issue, not a strategic responsibility to be shared among the<br />
organization’s stakeholders (National Academy of Public Administration, 1992;<br />
Kets de Vries, 1988). That is, the intent is to replace X by Y, who has similar skills<br />
and training. What is missing is the link between the vacancy, or the forthcoming<br />
vacancy, and the organization’s strategic needs (Gratton and Syrett, 1990)—<br />
particularly those related to preserving the innovations it has achieved. Unprecedented<br />
global competition is forcing companies in the private sector to rethink<br />
succession planning in this strategic light, and those failing to do so are increasingly<br />
being ‘‘punished’’ by either the market or their competition, and usually by<br />
both. I would argue that the need for such strategic thinking is equally acute in<br />
the public sector, albeit motivated by different factors. The approach, however,<br />
seems long in coming. Although some states have moved toward a more strategic<br />
view of executive recruitment, this effort has generally been initiated only after<br />
the leader has resigned or been terminated. 2<br />
Difficulty of Managing Succession in a Turbulent Environment<br />
There are actually two challenges to managing succession: technology and turbulence.<br />
Public-sector leaders have limited access to search technology and search<br />
firms; they may not even understand the steps in a strategic search process. The<br />
literature is thin on the subject and offers few clues about how to proceed. Turbulence<br />
now exists in all three sectors. It is not just in the public sector that strategic<br />
planning must somehow be both short- and long-term. The source of turbulence<br />
differs by sector (competition versus election, for example), but the swirling confused<br />
winds that each produces can make the process more complicated anywhere.<br />
What separates the sectors is their reaction to turbulence.<br />
Public-sector leaders too often allow the turbulence to limit their scope of<br />
action (‘‘there will be a new mayor so I have no control’’), whereas private-sector
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347<br />
leaders are expected to ‘‘manage’’ the turbulence (‘‘how can we move into this<br />
new market and fast?’’). Elections need not doom the process of executive succession.<br />
If the first three barriers could be overcome and leaders had the will—were<br />
expected to plan for succession and saw it as a strategic task—the technology<br />
could be acquired and the turbulence acknowledged but not succumbed to.<br />
Keeping these barriers in mind, we turn to an example of how a public-sector<br />
succession can be managed successfully and how hard-won innovations can survive<br />
the transition.<br />
Managing a Public-Sector Transition: A Case Study<br />
The New York City Department of Juvenile Justice was created as a separate<br />
executive-branch agency in 1979. I served as its commissioner for seven years,<br />
from 1983 to 1990. During my tenure, the department accomplished two major<br />
goals. We revitalized a bureaucracy that had originally been part of a ‘‘megaagency’’<br />
and had lost all sense of purpose and efficiency before being reincarnated<br />
as a separate department in 1979 (Gilmore and Schall, 1986). We developed<br />
a clear mission and role for juvenile detention. Overall, we created an innovative<br />
organization, and believed that sustaining our innovations and the impetus to<br />
innovate were critically important. 3 The executive staff of the Juvenile Justice<br />
Department had become a team in Katzenbach and Smith’s (1993) sense. We had<br />
moved from being preoccupied with handling an endless supply of short-term<br />
issues toward building the capacity for and the pattern of looking ahead. Crucial<br />
to this focus was creating the notion of case management as a way to make real<br />
our newly defined mission of custody and care and to explore its implications for<br />
the children we served and the staff attending to them. Although I was offered<br />
opportunities to leave the department early on, I determined that two additional<br />
goals had to be reached before I felt ‘‘finished’’ enough to depart. The first involved<br />
institutionalizing our case management program throughout the agency.<br />
The second was receiving final city approval of our plans to replace a much<br />
maligned secure detention facility with two new, smaller, community-based facilities.<br />
By early 1988, these goals were well on their way toward accomplishment,<br />
and I believed the time for new leadership was nearing. I discussed my role<br />
in the transition process with Tom Gilmore, an organizational consultant to the<br />
department and author of Making a Leadership Change (Gilmore, 1988). It is to<br />
his thinking and framework that we owe much of the work that followed, beginning<br />
with a retreat, in the fall of 1988, for the executive staff.<br />
Launching the ‘‘Finishing Up’’ Phase<br />
During this multiday retreat, we began by discussing how our group was currently<br />
faring and what work each unit in the agency would be undertaking in the<br />
next two years. Then, each executive staff member outlined what his or her own<br />
time horizon was likely to be, and how that did or did not dovetail with the<br />
work to be accomplished. In essence, we acknowledged we were launching a
348 A PPENDIX II<br />
‘‘finishing up’’ phase, with all that implied: pride in achievement, exhaustion from<br />
the effort, disappointment about unrealized goals, and full doses of the irritation<br />
and affection built up over the years. I announced my intention to leave at this<br />
time but did not actually leave for 18 months.<br />
We then turned to issues of both legacy and succession: legacy to ensure that<br />
our innovations would survive and succession as a major strategy. As to succession,<br />
we determined that we preferred someone from our own ranks. By the end<br />
of the retreat, not only had we ‘‘chosen’’ our candidate, the assistant commissioner<br />
for secure detention, she had begun to see herself as a possible successor.<br />
But how could we ensure that our legacy would be preserved? We invented four<br />
questions for ourselves, which we attempted to address simultaneously during<br />
the retreat and for the next year and more. We saw these challenges, in fact, as a<br />
set of Russian dolls, each nested in another:<br />
▲ How could we get our candidate appointed as the next commissioner of<br />
the Juvenile Justice Department?<br />
▲ If this failed, how could we get someone else who would continue our<br />
innovations and our vision?<br />
▲ If this too failed, and a nonsupporter was appointed, how could we keep<br />
successful innovations alive?<br />
▲ If all else failed, could we leave a ‘‘treasure map’’ so a future supportive<br />
commissioner could rediscover what we had done?<br />
We tackled these questions simultaneously by scenario-playing, by anticipating<br />
pitfalls, and by creating alternative paths—what Bardach (1977) calls the work of<br />
‘‘dirty-minded implementors.’’ Our strategies are discussed below in reverse<br />
order from the list of questions.<br />
Designing a Treasure Map<br />
The idea was, if all else had failed, to provide the next supportive commissioner<br />
with a series of clues about our efforts—our treasures. We decided, for example,<br />
to leave behind the following:<br />
▲ Traces of each of our innovative programs, rather than cutting any one (in<br />
the face of significant budget cuts) to spare the rest<br />
▲ At least one staff person for each program so it could be fairly easily resurrected<br />
▲ A good written record in files and public documents about our accomplishments<br />
▲ Champions for each major initiative<br />
More generally, we knew we were leaving behind a staff imbued with a vision of<br />
innovation and excellence.
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349<br />
Our support and acknowledgment of the staff’s good work had been a hallmark<br />
of our administration, and we counted on their enhanced capacity to carry<br />
forward much of the innovation.<br />
We were not naive enough to believe that, if discovered, our treasures would<br />
get resurrected under the same names and exactly in the same way. That was not<br />
the goal. We were not looking for eternal life; rather, we hoped that the clues<br />
might somehow provoke new ideas to sustain our momentum and direction.<br />
Keeping Successful Innovations Alive<br />
The two new tactics we pursued were preparing people and ‘‘hardwiring’’ the<br />
system. We also took advantage of previous strategic decisions to help preserve<br />
our legacy of innovative programs.<br />
Preparing People<br />
By early 1989 the executive staff began identifying talent at the next level down<br />
within each unit. Determining the criteria for such identification was not a simple<br />
matter, however, and provoked heated debates about overall skills, vision,<br />
agency mission, managerial ability, and other factors. Nevertheless, we compiled<br />
a list of about 30 people and then assessed each person’s strengths and weaknesses<br />
and the likelihood of the individual’s staying on with the agency. We<br />
specified what each needed for professional development and began connecting<br />
her or him with appropriate opportunities—pledging that we would watch out<br />
for each other’s staff and help them along the way. From this review, for example,<br />
we drew upon the talent of a staff assistant with the potential of developing<br />
managerial capacity and targeted a heretofore overlooked senior operational<br />
manager for more cross-agency work and exposure to the overall system. As we<br />
grew to understand who would be leaving, we discussed who could be groomed<br />
to take over.<br />
Compiling this list helped immensely in focusing our training resources. As<br />
we learned of various city-wide programs, for example, we referred to our list so<br />
people on it could be offered these opportunities.<br />
Hardwiring<br />
Some things in organizations have a life of their own; they go on against almost<br />
all efforts to change them. At the Juvenile Justice Department those things included<br />
the forms used to process kids. I remember two years into my tenure<br />
finding forms in use that predated the 1979 creation of the department as a separate<br />
agency. This infuriated me then. Later, it intrigued me. What about those<br />
forms made them survive despite our efforts to create new systems? They seemed<br />
almost like permanent fixtures of the agency; they were hardwired. In a deliberate<br />
effort to create an equivalent method with equal sticking power, we turned<br />
our attention to what we hoped might be our version of those old forms: the<br />
department’s newly developed case-management computer-tracking system. We<br />
put a great deal of energy into moving that ahead. We believed that if a system
350 A PPENDIX II<br />
was in place, hardwired, which in effect systematized the case management of<br />
individual children and reported data, it would carry a great deal of weight. We<br />
knew that weight could easily become inertia: it would take an effort of significant<br />
proportion to shift away from it.<br />
Our focus on hardwiring also extended to the department’s external relationships,<br />
particularly in the realm of oversight. ‘‘Blessed’’ with multiple agencies<br />
overseeing our work, we figured that if they became accustomed to receiving<br />
certain data, reported in certain ways, they would be likely to request that information<br />
and format subsequently and exert some pressure toward our case management<br />
approach and system to receive it.<br />
Strategic Decisions<br />
Earlier, we had decided to run a community-based aftercare program ourselves<br />
rather than contract it out; doing so involved tremendous effort, including establishing<br />
new civil service positions. We felt that in an (inevitable) financial crisis,<br />
it would be easier for the city to cancel contracts than to authorize layoffs, and<br />
we were right. We experienced successive rounds of budget cuts but were able<br />
to hold on to at least a core of staff. Also, our intensive home-based program,<br />
Family Ties, an alternative to costly state placement, was positioned as a revenueenhancer:<br />
each staff person should not be charged to our budget as a cost, we<br />
insisted, but instead counted as saving the state and city together $70,000 per<br />
child placed with Family Ties. As a result, the Juvenile Justice Department actually<br />
added positions in the program when the overall budget was cut.<br />
Finding a Successor Who Would Continue Our Efforts<br />
Because New York City was facing a mayoral campaign (between David Dinkins<br />
and Rudolph Giuliani) as we were devising our legacy and succession strategies,<br />
we designed scenarios for each candidate based on whom he might want as<br />
commissioner of the Juvenile Justice Department. We brainstormed a range of<br />
issues including values, ethnicity, and gender and considered people fitting various<br />
profiles. We wanted to be able to present a list of real candidates if someone<br />
asked—and to present that list even if no one did. We then went on to think<br />
about who would likely be influential in the new mayor’s decision-making process<br />
and whether we knew them or knew someone who did.<br />
Getting Our Candidate Appointed<br />
David Dinkins was elected, and his approach to appointing commissioners was<br />
decentralized, bordering on the chaotic. Committees named for each agency<br />
were asked to interview candidates and make recommendations to the mayor. I<br />
knew the person chairing the Juvenile Justice group and talked with her directly.<br />
Along with others, our candidate was interviewed; she was recommended and<br />
ultimately selected to be the new commissioner.
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351<br />
Managing the Feelings<br />
Although the decision to leave the Department of Juvenile Justice was strictly my<br />
own, and I strongly attempted to ensure that the transition was smooth, the process<br />
was hardly easy. Indeed, years after, when I began writing this article, I<br />
thought that I had announced my intention to leave six months prior to my departure—only<br />
after checking notes did I realize it actually had been 18 months. This<br />
confusion reflects the difficulties involved. There were issues of authority, over<br />
hiring, for example, and the natural tension each of us felt between being ready<br />
to move on and reluctant to leave. Managing one’s own succession is not a simple<br />
affair, which is why, in the public and private sector, the issue of succession itself<br />
and the process of seeking a successor are so often badly handled.<br />
Yet I believe that when a team has invested as much as we had in creating<br />
and innovating organization, the work is unfinished if you have not attempted to<br />
think strategically about its continuation. Today, the department’s case-management<br />
system and the Aftercare and Family Ties programs are all in place, although<br />
reduced by budget cuts. While my successor remained committed to the agenda<br />
we had developed together, she took the agency in new directions with a focus<br />
on prevention. She remained at Juvenile Justice for four years and her successor<br />
has worked hard to keep the basic programs in place and move the agency<br />
forward.<br />
Moving Forward<br />
How can we persuade public-sector leaders to take up the task of succession?<br />
Sector does not matter when it comes to the leader’s dark side; the wish to believe<br />
in one’s own immortality and to stay in control (Kets de Vries, 1988) can be<br />
found in leaders across sectors. Although leaders in all sectors confront relentless<br />
demands on their time and energies, private-sector cultures work more powerfully<br />
to stress the need to plan ahead. We will have to cultivate that emphasis in<br />
the public sector if we seek it. We can begin by searching for stories or case<br />
examples of successful and strategic public-sector transitions. We can attempt to<br />
set the expectation through education, solidify it through public attention, and<br />
seek to attract ambassadors to the work of the public sector.<br />
This is not the easiest of times to build a focus on the long term, however.<br />
There is a serious disconnect between the demands on, and expectations of,<br />
public-sector leaders and their lengths of stay. Perhaps the ‘‘connect’’ is all too<br />
clear: as citizens we ask a lot, offer little in terms of understanding and support<br />
(let alone compensation), blame easily, and reward infrequently. In any event,<br />
the average tenure of public-sector agency heads is less than two years. Given<br />
the impact of such a brief tenure on expected results, advice is being offered<br />
about how to shorten the learning curve or reach full speed more quickly. These<br />
observations, while well intentioned, seem inevitably to fall short. Public-sector<br />
leaders need to stay longer and focus more on the future to ensure the quality of<br />
government we need.<br />
Democracies offer citizens an opportunity, through elections, to signal their
352 A PPENDIX II<br />
preferences, and elected officials have the right to create new directions and<br />
change course. Yet both citizens and elected officials must avoid ‘‘change for<br />
change’s sake.’’ Not only can that attitude slide all too easily into simple-minded<br />
government-bashing, with the public increasingly losing respect for any government<br />
programs and any government worker; it also severely constrains government’s<br />
capacity to go forward and build on the best of its efforts—in other words,<br />
its capacity to sustain innovation.<br />
Both the public and those in the government need to learn to honor the past<br />
and build upon it. We must begin creating the expectation that the public sector<br />
can, and should, focus on the longer term. As I have suggested in this article,<br />
senior officials, whether elected or appointed, must not only think strategically<br />
during their tenure but also be oriented beyond their tenure. Developing the<br />
willingness and ability to devise an effective approach to succession planning is<br />
a crucial step in that process.<br />
Acknowledgment<br />
The author wishes to thank Bob Behn and the participants in the 1994 Duke<br />
University Faculty Seminar on Organizational Innovation in State and Local Government,<br />
sponsored by the Ford Foundation, for their reactions and assistance in<br />
working through issues of public-sector succession. Katherine Farquhar demonstrated<br />
extraordinary generosity in offering a thorough and thoughtful critique of<br />
an earlier version of this article. The comments of the anonymous reviewers are<br />
also very much appreciated. Finally, Tom Gilmore’s earlier assistance and continuous<br />
support deserve acknowledgment here.<br />
Notes<br />
1. See Yin ( 1979) for an early discussion of the routinization of innovations.<br />
2. In the early 1980s, the Edna McConnell Clark Foundation funded what<br />
was then the executive search firm of Isaacson, Ford, Webb to be available to<br />
governors looking for new commissioners of correction. And the National Governors<br />
Association, with funding from the Robert Wood Johnson Foundation,<br />
began a State Health Recruitment Center in the early 1990s that lasted no more<br />
than two years. Individual governors and mayors have turned to search firms<br />
from time to time, but most rely on a narrow pool of people they know.<br />
3. The Department of Juvenile Justice won the Ford Foundation/Kennedy<br />
School of Government Innovation Award in State and Local Government in 1986,<br />
the first year of the awards program, for its case-management program for at-risk<br />
youth. The department was also recognized in the Public Broadcasting System<br />
documentary, ‘‘Excellence in the Public Sector with Tom Peters.’’ Additional program<br />
innovations included creating an Aftercare Program and adapting Home<br />
Builders to the juvenile justice system in a program we called Family Ties.<br />
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Gordon, Gil E. and Ned Rosen, 1981. ‘‘Critical Factors in Leadership Succession.’’<br />
Organizational Behavior and Human Performance, vol. 27, 227–254.<br />
Gouldner, Alvin W. 1950. ‘‘The Problem of Succession and Bureaucracy.’’ In<br />
A. W. Gouldner, ed., Studies in Leadership. New York: Harper & Brothers,<br />
pp. 644–662.<br />
Gratton, Lynda and Michel Syrett. 1990. ‘‘Heirs Apparent: Succession Strategies<br />
for the Future.’’ Personnel Management, January, pp. 34–38.<br />
Greenblatt, Milton. 1983. ‘‘Management Succession: Some Major Parameters.’’<br />
Human Science Press.<br />
Herzlinger, Regina. 1994. ‘‘Effective Oversight: A Guide for Non profit Directors.’’<br />
Harvard Business Review, July-August, pp. 52–60.<br />
Katzenbach, Jon R. and Douglas K Smith. 1993. The Wisdom of Teams: Creating<br />
the High Performance Organization. Boston: Harvard Business School Press.<br />
Kets de Vries, Manfred F. R. 1988. ‘‘The Dark Side of CEO Succession.’’ Harvard<br />
Business Review, vol. 88 (1): 56–60.<br />
National Academy of Public Administration. 1992. Paths to Leadership: Executive<br />
Succession Planning in the Federal Government. Washington, D.C.: National<br />
Academy of Public Administration.<br />
Rainey, Hal G. and Barton Wechsler. 1988. ‘‘Executive-Level Transition: Toward<br />
a Conceptual Framework.‘‘ Public Productivity Review, vol. 13 (1).<br />
Rainey, Hal G. and Barton Wechsler. 1992. ‘‘Study of Succession Planning and<br />
Executive Selection: Preliminary Research Results.’’ Literature Review and<br />
Annotated Bibliography, June.<br />
Sonnenfeld, Jeffrey A. 1988. The Hero’s Farewell: What Happens When CEO’s<br />
Retire. New York: Oxford University Press.
354 A PPENDIX II<br />
Yin, Robert K. 1979. Changing Urban Bureaucracies: How New Practices Become<br />
Routinized. Lexington, MA: Lexington Books.<br />
Case 3: How a Nonprofit Organization Plans for Succession:<br />
Next in Line<br />
Elaine’s Perspective<br />
When my husband retired, I realized that the day was approaching when I would<br />
no longer work for the Greensboro Regional Realtors Association (GRRA). Having<br />
worked diligently to turn the association into a good-to-great organization—a<br />
Jim Collins concept explored in his book by the same name (2001, HarperCollins)—I<br />
made a deliberate decision that given the opportunity I would help the<br />
association continue on its path to excellence no matter who led the organization.<br />
In the fall of 2000, I contacted the incoming board president and presidentelect<br />
to discuss my decision to leave the association at the end of 2002. I informed<br />
them that I had identified one employee as my potential successor—Michael<br />
Barr, GRRA’s chief operating officer. Having worked closely with Michael for a<br />
little more than a year, I saw in him several qualities that exemplified leadership:<br />
▲ Humility<br />
▲ A professional willingness to do what had to be done<br />
▲ The willingness to channel energy into the association rather than into<br />
himself<br />
▲ The ability to credit staff and volunteers, when appropriate<br />
▲ A desire to develop both personally and professionally<br />
Based on my recommendation to consider an internal candidate for my position,<br />
the incoming president and president-elect both felt that a succession plan was<br />
in order. The next decision was whether I or a consultant should put the plan<br />
together.<br />
Shortly after my conversation with the president and president-elect, the full<br />
executive committee met and decided that I should create the succession plan.<br />
The committee believed that my knowledge of the association, its mission, and<br />
its needs—as well as my 10 years in its top staff position—gave me the insight<br />
required to create a thorough plan. Additionally, the committee expressed complete<br />
trust in me and my ability to not compromise the association. In total, the<br />
committee felt that a solid management plan for succession would be an important<br />
part of the association’s efforts to develop talent, meet organizational needs,<br />
and improve the association’s overall results on behalf of members.<br />
Using my job description, a list of things that I did that were not in my official<br />
Source: Elaine H. Ernest and Michael P. Barr, ‘‘Next in Line,’’ Association Management, 55:10<br />
(2003), 42. Used with permission of Association Management.
Case Studies on Succession Planning and Management<br />
355<br />
job description, knowledge gained from scanning literature on CEO skill sets,<br />
and my understanding of the association’s strategic plan, I drafted a work plan<br />
that defined the responsibilities and challenges of the executive position and<br />
outlined the areas in which I would coach and mentor Michael. It was early March<br />
2001 when I submitted this draft succession plan to the executive committee. The<br />
committee accepted the plan in mid-March, and Michael and I began discussions<br />
about his long-range career plans. I asked him questions such as:<br />
▲ Are you interested in obtaining the Certified Association Executive (CAE)<br />
designation?<br />
▲ Are you interested in expanding your responsibilities in the association<br />
and the community?<br />
▲ Are you willing to travel with me to additional professional development<br />
seminars?<br />
▲ Are you willing to work with me as your mentor for an opportunity to<br />
become a CEO? (No promises were made, of course.)<br />
His affirmative answers noted, we started working through the actual plan outline.<br />
Because Michael was COO, all staff reported to him. To free up time for<br />
him to work through the succession plan, we diverted some of his day-to-day<br />
responsibilities to other staff members. Job descriptions for senior managers were<br />
reworked to lessen Michael’s workload. To explain this shift in activities, we<br />
informed staff that the executive committee wanted Michael to be more involved<br />
with the overall operations and mission of the association. While this was true,<br />
we did not apprise staff that Michael was being groomed as my potential replacement.<br />
For the next 15 months, Michael and I spent a few hours each week reviewing<br />
the plan, setting priorities for the next month, making adjustments when necessary,<br />
and reporting to the executive committee on a quarterly basis. The committee<br />
left the decisions of progress, needed training, and adjustments to me, with<br />
input from Michael.<br />
Here are a few things that I learned from this experience.<br />
1. Every CEO is capable of doing succession planning if he or she cares about<br />
the organization.<br />
2. Succession planning is not an easy task. Little research is available about<br />
it, especially for the not-for-profit sector.<br />
3. Succession planning is an excellent way to assess the organization, look<br />
at trends, peek at what is coming down the road, and realize your<br />
strengths and weaknesses as an executive.<br />
Working through this plan with leadership and another high-level manager,<br />
it was easy to see what habits made the association successful and what areas
356 A PPENDIX II<br />
needed more attention. It also solidified the organization’s core values and made<br />
it clear what was important to continue.<br />
Michael’s Perspective<br />
After I agreed to and signed the work plan outline, I really got busy. I’d like to<br />
say the task ahead of me looked simple, but it didn’t. At times I felt as though I<br />
was pledging a fraternity all over again. However, Elaine was a wonderful coach<br />
and mentor. Whether this adventure would turn out as suggested was anyone’s<br />
guess. My focus was on learning as much as I could about association management,<br />
qualifying to sit for and passing the CAE exam, accomplishing the items<br />
detailed in the work plan, building a network of colleagues, and enjoying the<br />
experience. The plan was specific and intense. It outlined nine major components<br />
of the executive position and specified several competencies in each area.<br />
Following are the components of the work plan and some of my prominent<br />
accomplishments in each area.<br />
Essential Management Responsibilities<br />
This area included nine components such as financial oversight, office administration,<br />
and understanding the parallel structures of the association. Accomplishments:<br />
▲ Worked with and advised association volunteer groups, task forces, committees,<br />
directors, officers, and presidents.<br />
▲ Supervised staff; evaluated job descriptions, performance, salary administration,<br />
and work processes to provide high-quality and efficient services<br />
to the membership.<br />
▲ Developed a three-year budget model and new reports for the board of<br />
directors on nondues revenue sources.<br />
▲ Developed a new member benefits program that included affiliating with<br />
a local credit union and offering members discounts on local products and<br />
services.<br />
Essential Administrative Responsibilities<br />
This component was primarily composed of human resources management issues<br />
such as employee performance, oversight of employee benefits plans, and<br />
compensation planning. Accomplishments:<br />
▲ Coordinated employee searches that included position marketing, resume<br />
evaluations, telephone and on-site interviews, compensation negotiations,<br />
and follow-up correspondence.<br />
▲ Researched and presented a new 401(k) retirement program and an employee<br />
education assistance program, which the board approved.
Case Studies on Succession Planning and Management<br />
357<br />
Research and Statistics<br />
Among other things, this area dealt with member demographics, trends in the<br />
profession, and industry demographics. Accomplishments:<br />
▲ Collaborated with a local university economist to provide our membership<br />
with local and regional market reports.<br />
▲ Collaborated with a local university professor to produce an unbiased survey<br />
for the association membership.<br />
Information Technology<br />
This area included competencies such as keeping members up to date with industry<br />
technology trends and continual analysis and implementation of the membership’s<br />
technology needs. Accomplishments:<br />
▲ Developed and implemented a technology infrastructure plan that included<br />
replacing the phone system, upgrading computer software, and<br />
adapting wireless technology.<br />
▲ Developed a new Web site that allows the membership to pay association<br />
bills online and provides segmented information according to members’<br />
preferences.<br />
▲ Provided the membership with various technology-training opportunities,<br />
which had been requested through membership surveys.<br />
Facilities Management<br />
This area covered everything from the HVAC system to aesthetics and landscaping.<br />
Accomplishments:<br />
▲ Managed and supervised the association’s banquet facility renovations and<br />
grounds beautification.<br />
▲ Managed and supervised the association’s building maintenance contractors<br />
and banquet facility operations.<br />
Strategic Planning<br />
True competency in this area was defined by the ability to keep staff focused on<br />
the vision of the association, continually evaluate the association’s operations,<br />
and commit and adhere to the strategic objective of the organization. Accomplishments:<br />
▲ Participated in the research and preparation of the strategic planning<br />
board retreat, including negotiating with consultants, preparatory work<br />
with consultants, and execution of retreat, followed by the development<br />
and yearly refinement of the plan.<br />
▲ Focused staff on association priorities to accomplish the strategic goals of<br />
the association within the set timeline.
358 A PPENDIX II<br />
Internal and External Relations<br />
Government affairs, coalition building, and public relations were the bedrocks of<br />
this component. Accomplishments:<br />
▲ Attended local, state, and National Realtor Association board of director<br />
meetings.<br />
▲ Represented the association at the Triad Real Estate and Building Industry<br />
Coalition and at other regional coalitions.<br />
▲ Continually represented the association at community events, local government<br />
meetings, and association events.<br />
▲ Networked with the leaders of the local and state associations.<br />
Continuing Education<br />
One of the key thrusts of this area was attaining the CAE designation, showing a<br />
commitment to association management, and continual learning. Accomplishments:<br />
▲ Attended numerous coaching and training seminars offered by ASAE, the<br />
National Association of Realtors, the North Carolina Association of Realtors,<br />
and GRRA on various subjects.<br />
▲ Earned my CAE designation.<br />
General Working Knowledge<br />
The final component focused on understanding industry-specific processes, our<br />
bylaws, and the financial aspects of the association. Accomplishments:<br />
▲ Trained to administer the association’s professional standards and arbitration<br />
process.<br />
▲ Studied and enforced multiple listing service rules and regulations and<br />
association bylaws and rules and regulations.<br />
▲ Acted as chapter administrator for 360-member North Carolina Certified<br />
Commercial Investment Members, which the association manages.<br />
After working through each component of the succession plan, I submitted a<br />
letter to the executive committee expressing my interest in the CEO position. At<br />
this point it was May 2002, and I was able to include a detailed description of<br />
how I had accomplished the work set out in the plan.<br />
Coming to the Conclusion<br />
A month later, the full board of directors met. The president informed the directors<br />
that Elaine was leaving her position as CEO of GRRA at year’s end. Copies of<br />
the completed work plan and Michael’s letter of interest were distributed. Discus-
Case Studies on Succession Planning and Management<br />
359<br />
sion ensued about the succession process and whether the job opening should<br />
be taken outside the organization.<br />
A minority of board members felt that if Michael were truly qualified, he<br />
would win out in an extensive search. The majority of the directors, however, felt<br />
comfortable that the plan was comprehensive and that the executive committee<br />
had been sufficiently involved through its receipt of progress reports. An open<br />
search, in their opinion, would cost the association time and money. After taking<br />
a vote, the executive committee was granted permission to interview Michael for<br />
the position. If the committee was not satisfied with the interview, the search<br />
would be opened, and a selection committee appointed.<br />
‘‘Ten of eleven good-to-great CEOs came from inside the company,’’ says Jim<br />
Collins in his book Good to Great. The Greensboro Regional Realtors Association<br />
found that to be the case after Michael’s successful interview for the chief staff<br />
executive position. In mid-July 2002, more than a year after the draft succession<br />
plan was submitted, GRRA’s board president started contract negotiations for the<br />
association’s new president. Michael took over the top spot on January 1, 2003.<br />
Mentoring Magic<br />
Since Michael P. Barr, CAE, took over as executive vice president of the Greensboro<br />
Regional Realtors Association, North Carolina, in January, he has started his<br />
own mentoring program with senior staff. Read what he has to say on the subject.<br />
Association Management: Why did you start the program?<br />
Michael P. Barr, CAE: Being a product of mentoring, I saw the value in developing<br />
staff to their fullest and helping them with their career goals. Essentially<br />
that’s what Elaine did for me. It’s a win-win for both the association and the<br />
employees.<br />
Association Management: What’s involved?<br />
Barr: I meet regularly with staff. We consistently go over both their work<br />
goals and professional goals. It’s individualized according to their preferences,<br />
because we’re trying to help them achieve their professional best. I take them to<br />
conferences, send them to workshops, and help them achieve the designation of<br />
their choosing. Basically, I go over their goals and objectives and help them get<br />
the education they need to obtain their goals. The board thinks that this is so<br />
important that it has increased the budget line item for staff development.<br />
Association Management: Who can participate?<br />
Barr: It’s open to anyone who has expressed an interest in association management.<br />
Obviously, it has to be tied to the job. Senior staff is really taking advantage<br />
of it.<br />
Association Management: How’s it been received so far?<br />
Barr: I have full participation. Those who have expressed an interest in learning<br />
what the top job entails, what running an association entails, are really receptive<br />
to learning. Empowering them to take on projects and responsibility has<br />
been a big plus in the operation of the association.<br />
Association Management: What advice would you give to staffers?
360 A PPENDIX II<br />
Barr: Approach mentoring with the best attitude possible. It’s a win no matter<br />
what happens. You’re going to do a lot of extra work, but it’s good preparation<br />
for executive-level positions. Get ready for long hours.<br />
Resources<br />
Articles<br />
‘‘Executive Selection: A Systematic, Team-Based Approach,’’ Executive IdeaLink,<br />
July 2001.<br />
‘‘What If You Were Gone,’’ Association Management, August 2000.<br />
‘‘Mentoring: A Tool for Learning and Development,’’ Association Educator, October<br />
1999.<br />
Books<br />
Knowdell, Richard L. Building a Career Development Program: Nine Steps for<br />
Effective Implementation. Consulting Psychologists Press, 1996.<br />
Rothwell, William J. Effective Succession Planning: Ensuring Leadership Continuity<br />
and Building Talent From Within. AMACOM, 2000.<br />
Byham, William C., Audrey B. Smith, and Matthew J. Paese. Grow Your Own<br />
Leaders: How to Identify, Develop, and Retain Leadership Talent. Financial<br />
Times, Prentice-Hall, 2002.<br />
Wolfe, Rebecca Luhn. Systematic Succession Planning: Building Leadership<br />
From Within. 1996, Crisp Publications, 1996.<br />
Web Site<br />
Succession Planning Library (www.managementhelp.org/staffing /planning/sccs_<br />
pln/sccs_pln.htm)<br />
Case 4: Small Business Case:<br />
Passing the Torch<br />
Jim Gibney, president of Warren Pike Associates, says he grew up in the business.<br />
‘‘I was always drawn to mechanical things,’’ says Gibney, whose family-owned<br />
power transmission and motion control business is headquartered in Needham,<br />
Massachusetts ‘‘As a child, I became interested in the business. During the school<br />
vacations, I would go in to the business and help out. There I got to learn from<br />
one of the best salesmen there is, my father.’’<br />
Gibney characterizes his father as a master salesman and as a leader. He<br />
recounts his father’s career at Warner Electric before purchasing Warren Pike<br />
Associates followed by the purchases of W.M. Steele Co. and Cohen Machinery<br />
Co. to form J.G. Industries, Inc. Gibney says his siblings were drawn to other<br />
interests and have pursued other successful careers, but that he followed his<br />
Source: Richard Trombly, ‘‘Passing the Torch,’’ Industrial Distribution, 90:4(2001), 69–72. Used<br />
with permission from Industrial Distribution.
Case Studies on Succession Planning and Management<br />
361<br />
father’s footsteps from the beginning. He says that wasn’t always a simple path.<br />
‘‘My father was a hard worker and that was one of the values he instilled in me,’’<br />
says Gibney. ‘‘I worked my way up through the ranks. I’ve been in shipping and<br />
receiving, inside sales and outside sales before taking on a role in management.’’<br />
His father still remains active in the company and retains the title of CEO, but<br />
after years of working hard for the company, he is able to work on something<br />
else—his golf game down in Florida. Meanwhile, Gibney has taken on the role<br />
of president.<br />
‘‘It was an easy transition,’’ says Gibney. ‘‘I have been in upper management<br />
for so long and was already very familiar with the business. My siblings had never<br />
been involved with the business, so they weren’t concerned with the process of<br />
succession. My father and I had discussed it over the years and we knew I would<br />
take over when the time was right.’’ Gibney said they did very little in the way of<br />
formal succession planning.<br />
‘‘After some internal planning and adjustments,’’ says Gibney, ‘‘we realized<br />
that the end of year 2000 would be the right time.’’<br />
Gibney admits that part of the success of the transition relies upon keeping<br />
open channels of communication. While nothing was formalized in their planning,<br />
the details of succession were discussed and understood by all parties,<br />
including JG Industries’ 17 employees. ‘‘Communication is key,’’ says Gibney.<br />
‘‘We have a family atmosphere and we involve the employees in the business.<br />
People usually resist change and that can make succession difficult, but we involved<br />
them in the process. I think, by being included in this way, they are now<br />
excited by new opportunities in a rapidly changing industry.’’<br />
Will his own children take over the family business? Gibney says his children<br />
are between the ages of seven and 13, so it is a little too soon to tell if they will<br />
be involved. ‘‘Perhaps, down the road,’’ speculates Gibney.<br />
Not all children grow into their parents’ roles and not all successions occur<br />
so simply and with such positive results, points out Robert Middleton, a partner<br />
with the Chicago law firm of Nisen & Elliot.<br />
‘‘In most cases there are some hard truths,’’ says Middleton. ‘‘Many entrepreneurs<br />
spend their entire lives sacrificing time and energy only to have the whole<br />
organization fall apart and maybe tear the family apart in the process.’’<br />
Marc Silverman, president of Providence, Rhode Island-based consulting firm<br />
Strategic Initiatives Inc., says that when he counsels a family business, the first<br />
thing is to try to separate the family from the business.<br />
‘‘Then we can decide what we want for the family and what we want for the<br />
business,’’ says Silverman. ‘‘By looking at the family and the business, we can<br />
determine what they both need to be successful.’’<br />
Silverman advises a team approach by getting all of the family involved. He<br />
suggests a family council to assist in planning for the business’s future and in<br />
choosing a leader that will be best suited to the business—as well as resolving<br />
issues of the siblings that are not groomed for succession.<br />
Outsiders can be an enormous amount of help, says Silverman, though he
362 A PPENDIX II<br />
admits that can be difficult for entrepreneurs who are used to doing things in an<br />
autocratic style. It is hard to be objective and many of these issues are closely tied<br />
to the psychological issues of aging. He suggests bringing in a consultant early in<br />
the process if any obstacles develop.<br />
‘‘It is like tooth decay,’’ says Silverman. ‘‘The problem gets bigger the longer<br />
you wait.’’ Jefferey Gallant, a partner with Goodkind, Labaton, Rudoff & Sucharow,<br />
also suggests that businesses have an advisory board. It may be made<br />
up of family members, management, or outside professionals. Gallant says a<br />
board can decide on the important issues of who should lead and what their<br />
services are worth.<br />
Gallant says he is usually brought in for estate planning and has to bring up<br />
the topic of succession. He helps decide what makes the most sense as far as tax<br />
options and retirement, as well as for the business.<br />
‘‘The next step is to get all the parties involved to buy in to it,’’ says Gallant.<br />
‘‘It is so much easier when the owner is involved rather than handling these<br />
issues as part of an estate.’’<br />
Case 5: Family Business Succession:<br />
The Seeds of a Smooth Transition<br />
A month before Christmas, the garden center at Shiloh Nurseries Inc. in Emigsville,<br />
Pennsylvania, looks like a scene from a Norman Rockwell painting, with<br />
decorations and holiday greens at every door and window. Along the path leading<br />
to the side entrance, flowering cabbages are in full bloom.<br />
Inside, Michael Stebbins, 47, is busy getting ready for a Christmas selling<br />
season that will be short because of the late arrival of Thanksgiving. After 27<br />
years as co-owner of the nursery and landscaping business with his partner, Carl<br />
Jacobs, Stebbins knows exactly how he wants everything to look.<br />
He also knows exactly what he wants to happen to the company when he<br />
and Jacobs retire. Both want Shiloh Nurseries to remain a thriving business.<br />
That almost didn’t happen for the family that owned the company before<br />
them. When its founder died with no estate plan, his wife and son discovered<br />
they were unable to work together. The son left to form his own nursery business,<br />
taking many of Shiloh’s employees with him, and his mother was forced to<br />
sell the firm, which was tallying a modest $55,000 in annual sales. Today, Stebbins<br />
and Jacobs employ 25 full-time workers and about 40 more seasonal employees,<br />
and they expect to post sales of about $3 million this year.<br />
The two owners have six children between them but none who wants to take<br />
over the business—they’ve had their fill of nursery life during high school and<br />
summers home from college. Nonetheless, Stebbins and Jacobs do have two<br />
longtime, highly valued employees—their top salesman and landscape architect,<br />
Source: ‘‘The Seeds of a Smooth Transition,’’ Nation’s Business, 85:4 (1997), 25. Used with permission<br />
from Nation’s Business.
Case Studies on Succession Planning and Management<br />
363<br />
and their landscape supervisor—who would like to run a nursery and landscaping<br />
business someday.<br />
Stebbins and Jacobs liked the idea of them running Shiloh, so they set up a<br />
buy/sell agreement with the pair under which the two employees will begin to<br />
buy the company over two consecutive five-year periods. Each employee will<br />
purchase 12 percent of the company’s stock during the first five years and another<br />
12 percent during the second, at a fixed price of two times book value (with book<br />
value being recalculated annually). Payments will be made on an installment plan<br />
bearing interest at the prime rate plus 1.5 percent.<br />
After 10 years, the four principals will decide how to proceed. Jacobs, now<br />
53, is likely to retire then, but Stebbins hasn’t decided what he will do. Possible<br />
options include having the two employees purchase the remaining 52 percent of<br />
the company at that time or allowing a small number of other key employees to<br />
purchase some of that stock.<br />
Either way, Stebbins and Jacobs are glad that the salesman and the landscape<br />
supervisor are becoming part owners, because they will be positioned to take<br />
over the business when necessary. Shiloh has taken out life-insurance policies<br />
on each of the four shareholding partners; the insurance is in amounts sufficient<br />
to ensure that if any of the partners dies before the buy/sell agreement is completed,<br />
the other partners will be able to meet their obligations under the agreement.<br />
To come up with their plan, Stebbins and Jacobs drew on the advice of an<br />
estate-planning firm, Estate Archetypes Inc., in nearby York, Pennsylvania., and<br />
on Gordon Porter, a CPA and small-business consultant in Dover, Pennsylvania.,<br />
before approaching their lawyer to draft the necessary documents.<br />
‘‘One of the reasons I’m inclined to be so sure we’re doing things right is<br />
because I’m proud of the fact that we took a small business and grew it successfully,’’<br />
Stebbins says. ‘‘This is the company’s 60th-anniversary year, and I’d like to<br />
see it be here for another 60 years.’’<br />
Case 6: CEO Succession Planning Case:<br />
Do You Have a CEO Succession Plan?<br />
Jim Lumpkin’s first move as interim chief executive officer (CEO) for U.S.–<br />
Agencies Credit Union was to eliminate the position he’d just vacated. ‘‘The credit<br />
union was top heavy,’’ recalls Lumpkin, CEO of the Portland, Oregon, credit<br />
union. ‘‘At the time, we were spending too much money on management positions.<br />
We needed a CEO who could handle both jobs.’’<br />
Then he insisted that the board undertake a detailed search, both inside and<br />
outside the credit union, for CEO candidates. ‘‘Our last CEO felt he was named<br />
by default. The board never did a full search so there never was that buy-in that<br />
Source: Bill Merrick, ‘‘Do You Have a CEO Succession Plan?,’’ Credit Union Magazine 67:7 (2001),<br />
52. Used with permission from Credit Union Magazine.
364 A PPENDIX II<br />
they had the right person,’’ Lumpkin explains. ‘‘I stipulated that I wouldn’t apply<br />
for the job unless the board went through a full search process and really looked<br />
for who they wanted. That way there wouldn’t be any second-guessing.’’<br />
The board named Lumpkin CEO after a five-month search, and he has served<br />
in that capacity for four years. But watching the board struggle through the process<br />
made him recognize the need for a detailed succession plan outlining steps<br />
the board should take in case of CEO turnover—whether by resignation, termination,<br />
or death.<br />
The credit union’s recently completed succession plan details planning and<br />
preparation, general board guidelines, steps for emergency succession (broken<br />
down by the first day, week, and month), recruiting and hiring, desired qualifications<br />
and attributes, and other information. ‘‘We’re a smaller company and we<br />
look at our CEO as more of an operational CEO,’’ Lumpkin notes. ‘‘So the CEO<br />
needs to know which areas he or she would be responsible for—accounting,<br />
asset/liability management, compliance issues, examination processes, human<br />
resource administration, and investments. If the CEO leaves, board members<br />
might wonder who else will leave and how they’ll run the credit union. I wanted<br />
to identify skill sets and experiences they should look for.’’<br />
Among other information, the plan lists nine basic steps for CEO replacement:<br />
1. The board hopes for 90 to 120 days’ notice of intent to leave so it can have<br />
an orderly transition. The board would like to hire the new CEO at least<br />
30 days before the departure of the current CEO. It would be preferable<br />
to allow 60 days for this transition.<br />
2. The board will appoint a search committee to monitor the plan and recommend<br />
final candidates to the full board. The board’s executive committee<br />
will make up the search committee in part or in whole. It’s recommended<br />
that the committee consist of three to five individuals. It’s advisable that<br />
the current CEO not be a member of the search committee.<br />
3. The board will decide whether the search committee will conduct the full<br />
search process or whether to use an outside consulting firm. If the board<br />
hires an outside firm, determine the company’s responsibilities and cost,<br />
and specify details in a signed, written contract. Use a firm that’s familiar<br />
with credit union needs and philosophy.<br />
4. The executive committee, with the assistance of the interim CEO and management<br />
team, will update the existing CEO job description, organizational<br />
chart, and other information, and provide it to the search committee<br />
and/or consulting firm.<br />
5. Advertising for the CEO position will appear in local and industry trade<br />
publications.<br />
6. All resumes will be reviewed for basic qualities and experience. Interviews<br />
will be limited to three to five candidates. The search committee or consulting<br />
firm will present the best candidate to the board. If the board
Case Studies on Succession Planning and Management<br />
365<br />
doesn’t accept this candidate, the search committee or consulting firm will<br />
present the second choice.<br />
7. Verification of candidate credentials and employability may include, but<br />
isn’t limited to, educational transcripts, reference checks, credit bureau<br />
reports, CUMIS bond check, medical assessment as allowed by law, psychological<br />
appraisal, and chemical dependency testing.<br />
8. Notification of the new CEO will be provided to the Oregon Department<br />
of Consumer and Business Services, National Credit Union Administration,<br />
Credit Union Association of Oregon, CUMIS Insurance Group, and credit<br />
union attorneys.<br />
9. Publish articles in the quarterly newsletter to announce the current CEO’s<br />
departure and introduce the new CEO.<br />
‘‘Having a plan makes the board and our state regulator feel better,’’ Lumpkin<br />
says. ‘‘Also, staff knows that if something happens, the board will find a match<br />
that will fit members’ needs, internal staffing needs, and the credit union’s culture.<br />
It builds confidence throughout the credit union and reduces uncertainty.’’
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NOTES<br />
Preface<br />
1. Warren Bennis and Burt Nanus, Leaders: The Strategies for Taking<br />
Charge (New York: Harper and Row, 1985), p. 2.<br />
2. Bradley Agle, ‘‘Understanding Research on Values in Business,’’ Business<br />
& Society, September 1999, 326–387. See also Ken Hultman and Bill<br />
Gellerman, Balancing Individual and Organizational Values: Walking the<br />
Tightrope to Success (San Francisco: Pfeiffer, 2002).<br />
3. Charlene Marmer Solomon, ‘‘The Loyalty Factor,’’ Personnel Journal,<br />
September 1992, 52–62.<br />
4. Shari Caudron, ‘‘The Looming Leadership Crisis,’’ Workforce, September<br />
1999, 72–79.<br />
5. Arthur Deegan, Succession Planning: Key to Corporate Excellence<br />
(New York: Wiley-Interscience, 1986), p. 5. [This book, while out of print, is a<br />
classic.]<br />
6. As quoted in Harper W. Moulton and Arthur A. Fickel, Executive Development:<br />
Preparing for the 21st Century (New York: Oxford University Press,<br />
1993), p. 29.<br />
7. E. Zajac, ‘‘CEO Selection, Succession, Compensation and Firm Performance:<br />
A Theoretical Integration and Empirical Analysis,’’ Strategic Management<br />
Journal 11:3 (1990), 228. See also William Rothwell, ‘‘What’s Special<br />
About CEO Succession?’’ Global CEO Magazine [India], March 2004, Special<br />
Issue,15–20.<br />
8. R. Sahl, ‘‘Succession Planning Drives Plant Turnaround,’’ Personnel<br />
Journal 71:9 (1992), 67–70.<br />
9. ‘‘Long-Term Business Success Can Hinge on Succession Planning,’’<br />
Training Directors’ Forum Newsletter 5:4 (1989), 1.<br />
10. Dirk Dreux, ‘‘Succession Planning and Exit Strategies,’’ CPA Journal<br />
69:9 (1999), 30–35; Oliver Esman, ‘‘Succession Planning in Small and Medium-Sized<br />
Companies,’’ HR Horizons 103 (1991), 15–19; Barton C. Francis,<br />
‘‘Family Business Succession Planning,’’ Journal of Accountancy 176:2 (1993),<br />
49–51; John O’Connell, ‘‘Triple-Tax Threat in Succession Planning,’’ National<br />
Underwriter 102:40 (1998), 11, 19; T. Roger Peay and W. Gibb Dyer, Jr.,<br />
‘‘Power Orientations of Entrepreneurs and Succession Planning,’’ Journal of<br />
Small Business Management 27:1 (1989), 47–52; Michael J. Sales, ‘‘Succession<br />
Planning in the Family Business,’’ Small Business Reports 15:2 (1990), 31–40.<br />
367
368 N OTES<br />
Chapter 1<br />
1. Henry Fayol, Administration Industrielle et Generale (Paris: Société de<br />
l’Industrie Minerale, 1916).<br />
2. Norman H. Carter, ‘‘Guaranteeing Management’s Future Through Succession<br />
Planning,’’ Journal of Information Systems Management 3:3 (1986),<br />
13–14.<br />
3. See the classic article, Michael Leibman, ‘‘Succession Management: The<br />
Next Generation of Succession Planning,’’ Human Resource Planning 19:3<br />
(1996), 16–29. See also Ram Charan, Stephen Drotter, and James Noel, The<br />
Leadership Pipeline: How to Build the Leadership-Powered Company (San<br />
Francisco: Jossey-Bass, 2001).<br />
4. Richard Hansen and Richard H. Wexler, ‘‘Effective Succession Planning,’’<br />
Employment Relations Today 15:1 (1989), 19.<br />
5. See Chris Argyris and Donald Schön, Organizational Learning: A Theory<br />
of Action Perspective (Reading, Mass.: Addison-Wesley, 1978); Peter Senge,<br />
The Fifth Discipline: The Art and Practice of the Learning Organization (New<br />
York: Doubleday/Currency, 1990).<br />
6. Thomas P. Bechet, Strategic Staffing: A Practical Toolkit for Workforce<br />
Planning (New York: AMACOM, 2002).<br />
7. David E. Hartley, ‘‘Tools for Talent,’’ T D 58:4 (2004): 20–22.<br />
8. Ibid., p. 21.<br />
9. William J. Rothwell and H. C. Kazanas, The Strategic Development of<br />
Talent (Amherst, Mass.: HRD Press, 2003).<br />
10. Downloaded from http://news.ft.com/servlet/ContentServer?page<br />
nameFT.com/Page/GenericPage2 &c Page&cid1079420675546 on 18<br />
July 2004.<br />
11. Stephen Overell, ‘‘A Meeting of Minds Brings HR into Focus,’’ downloaded<br />
on 18 July 2004 from http://news.ft.com/servlet/ContentServer?page<br />
nameFT.com/StoryFT/FullStory&cStoryFT&cid1079420676509&p10<br />
79420675546<br />
12. The Human Capital Challenge (Alexandria, Va.: ASTD, 2003).<br />
13. J. Christopher Mihm, Human Capital: Succession Planning and Management<br />
Is Critical Driver of Organizational Transformation (Washington,<br />
D.C.: U.S. General Accounting Office, 2003).<br />
14. Walter R. Mahler and Stephen J. Drotter, The Succession Planning<br />
Handbook for the Chief Executive (Midland Park, N.J.: Mahler Publishing Co.,<br />
1986), p. 1.<br />
15. ‘‘Long-Term Business Success Can Hinge on Succession Planning,’’<br />
Training Directors’ Forum Newsletter 5:4 (1989), 1.<br />
16. Wilbur Moore, The Conduct of the Corporation (New York: Random<br />
House, 1962), p. 109.<br />
17. Rosabeth Moss Kanter, The Men and Women of the Corporation (New<br />
York: Basic Books, 1977), p. 48.
Notes<br />
369<br />
18. Norman H. Carter, ‘‘Guaranteeing Management’s Future Through Succession<br />
Planning,’’ Journal of Information Systems Management 3:3 (1986),<br />
13–14.<br />
19. Thomas Gilmore, Making a Leadership Change: How Organizations<br />
and Leaders Can Handle Leadership Transitions Successfully (San Francisco:<br />
Jossey-Bass, 1988), p. 19.<br />
20. William J. Rothwell and H. C. Kazanas, The Strategic Development of<br />
Talent (Amherst, Mass.: HRD Press, 2003).<br />
21. Lynda Gratton and Michel Syrett, ‘‘Heirs Apparent: Succession Strategies<br />
for the Future,’’ Personnel Management 22:1 (1990), 34.<br />
22. A. Walker, ‘‘The Newest Job in Personnel: Human Resource Data Administrator,’’<br />
Personnel Journal 61:12 (1982), 5.<br />
23. William J. Rothwell and H. C. Kazanas, Planning and Managing<br />
Human Resources: Strategic Planning for Personnel Management, 2nd. ed.<br />
(Amherst, Mass.: HRD Press, 2003).<br />
24. Andrew O. Manzini and John D. Gridley, Integrating Human Resources<br />
and Strategic Business Planning (New York: AMACOM, 1986), p. 3.<br />
25. Peter Capelli, ‘‘A Market-Driven Approach to Retaining Talent,’’ Harvard<br />
Business Review 78:1 (2000), 103–111; Joanne Cole, ‘‘De-Stressing the<br />
Workplace,’’ HR Focus 76:10 (1999), 1, 10–11; Robert Leo, ‘‘Career Counseling<br />
Works for Employers Too,’’ HR Focus 76:9 (1999), 6.<br />
26. ‘‘The Numbers Game,’’ Time, 142:21 (1993), 14–15.<br />
27. Ann Morrison, The New Leaders: Guidelines on Leadership Diversity<br />
in America (San Francisco: Jossey-Bass, 1992), p. 1.<br />
28. Ibid., p. 7.<br />
29. Arthur Sherman, George Bohlander, and Herbert Chruden, Managing<br />
Human Resources, 8th ed. (Cincinnati: South-Western Publishing Co., 1988),<br />
p. 226.<br />
30. Warren Boroson and Linda Burgess, ‘‘Survivors’ Syndrome,’’ Across<br />
the Board 29:11 (1992), 41–45.<br />
31. Gilmore, Making a Leadership Change, p. 10.<br />
32. Morrison, The New Leaders, p.1.<br />
33. See, for instance, Robert M. Fulmer, ‘‘Choose Tomorrow’s Leaders<br />
Today: Succession Planning Grooms Firms for Success.’’ Downloaded on 19<br />
July 2004 from http://gbr.pepperdine.edu/021/succession.html; W. Rothwell<br />
(Ed.), Effective Succession Management: Building Winning Systems for Identifying<br />
and Developing Key Talent, 2nd ed. [See http://www.cfor.org/News/<br />
article.asp?id4.] (Lexington, Mass.: The Center for Organizational Research<br />
[A division of Linkage, Inc.], 2004); ‘‘Succession Management: Filling the Leadership<br />
Pipeline,’’ Chief Executive, April 2004, 1, 4.<br />
34. M. Haire, ‘‘Approach to an Integrated Personnel Policy,’’ Industrial<br />
Relations, 1968, 107–117.<br />
35. J. Stuller, ‘‘Why Not ‘Inplacement?‘‘ ‘ Training 30:6 (1993), 37–44.<br />
36. William J. Rothwell, H. C. Kazanas, and Darla Haines, ‘‘Issues and Prac-
370 N OTES<br />
tices in Management Job Rotation Programs as Perceived by HRD Professionals,’’<br />
Performance Improvement Quarterly 5:1 (1992), 49–69. [This article is<br />
the only existing research-based article on management job rotations that the<br />
author can find.]<br />
37. William J. Rothwell, ‘‘Go Beyond Replacing Executives and Manage<br />
Your Work and Values.’’ In D. Ulrich, L. Carter, M. Goldsmith, J. Bolt, & N.<br />
Smallwood (Eds.), The Change Champion’s Fieldguide (Waltham, Mass.: Best<br />
Practice Publications, 2003), pp. 192–204.<br />
38. Matt Hennecke, ‘‘Toward the Change-Sensitive Organization,’’ Training,<br />
May 1991, 58.<br />
39. D. Ancona and D. Nadler, ‘‘Top Hats and Executive Tales: Designing<br />
the Senior Team,’’ Sloan Management Review 3:1 (1989), 19–28.<br />
40. Ken Dychtwald, Tamara Erickson, and Bob Morison, ‘‘It’s Time to Retire<br />
Retirement,’’ Harvard Business Review, March 2004, downloaded from<br />
the online version on 3 May 2004.<br />
Chapter 2<br />
1. See William J. Rothwell, ‘‘Trends in Succession Management,’’ The Linkage,<br />
Inc. eNewsletter, 2/15/00 (2000), presented on the Web at www.linkage<br />
inc.com/newsletter26/research.htm.<br />
2. See the now classic article, Michael Leibman, ‘‘Succession Management:<br />
The Next Generation of Succession Planning,’’ Human Resource Planning<br />
19:3 (1996), 16–29.<br />
3. William J. Rothwell, Robert K. Prescott, and Maria Taylor, Strategic<br />
Human Resource Leader: How to Help Your Organization Manage the 6<br />
Trends Affecting the Workforce (Palo Alto, Calif.: Davies-Black Publishing,<br />
1998).<br />
4. Ibid.<br />
5. P. Smith and D. Reinertsen, Developing Products in Half the Time (New<br />
York: Van Nostrand Reinhold, 1991).<br />
6. See Jac Fitz-Enz, How to Measure Human Resources Management (New<br />
York: McGraw-Hill, 1984).<br />
7. ‘‘The Aging Baby Boomers,’’ Workplace Visions, Sept.-Oct. 1996, found<br />
at www.shrm.org/issues/0996wv01.htm.<br />
8. ‘‘Cross-Generational Approaches,’’ Workforce Strategies 17:11 (1999),<br />
WS63–WS64.<br />
9. Shari Caudron, ‘‘The Looming Leadership Crisis,’’ Workforce, September<br />
1999, 72–79.<br />
10. ‘‘The Aging Baby Boomers.’’<br />
11. ‘‘Gap Between Rich and Poor Keeps Widening,’’ The CCPA Monitor,<br />
1995, presented at http://infoweb.magi.com/ccpa/articles/article21t.html [Unfortunately<br />
this site is restricted.]
Notes<br />
371<br />
12. Peter Cappelli, ‘‘A Market-Driven Approach to Retaining Talent,’’ Harvard<br />
Business Review, Jan.-Feb. 2000, 103–111; Joseph Dobrian, ‘‘Amenities<br />
Gain Ground as Recruiting/Retention Tools,’’ HR Focus, November 1999,<br />
11–12.<br />
13. Charlene Marmer Solomon, ‘‘The Loyalty Factor,’’ Personnel Journal,<br />
September 1992, 52–62.<br />
14. David L. Stum, ‘‘Five Ingredients for an Employee Retention Formula,’’<br />
HR Focus, September 1998, S9–S10.<br />
15. Lynn E. Densford, ‘‘Corporate Universities Add Value by Helping Recruit,<br />
Retain Talent,’’ Corporate University Review 7:2 (1999), 8–12.<br />
16. See, for instance, Thomas A. Stewart, ‘‘Have You Got What It Takes,’’<br />
Fortune 140:7 (1999), 318–322.<br />
17. Richard McDermott, ‘‘Why Information Technology Inspired but Cannot<br />
Deliver Knowledge Management,’’ California Management Review 41:4<br />
(1999), 103–117.<br />
18. Dawn Anfuso, ‘‘Core Values Shape W. L. Gore’s Innovative Culture,’’<br />
Workforce 78:3 (1999), 48–53; Donald Tosti, ‘‘Global Fluency,’’ Performance<br />
Improvement 38:2 (1999), 49–54.<br />
19. William J. Rothwell and John Lindholm, ‘‘Competency Identification,<br />
Modelling and Assessment in the USA,’’ International Journal of Training and<br />
Development 3:2 (1999), 90–105. For quality control in using competencies<br />
for assessment, see: Harm Tillema, ‘‘Auditing Assessment Practices in Organizations:<br />
Establishing Quality Criteria for Appraising Competencies,’’ International<br />
Journal of Human Resources Development and Management, 3:4<br />
(2003): 359.<br />
20. Rothwell, Prescott, and Taylor, Strategic Human Resource Leader.<br />
21. Bradley Agle, ‘‘Understanding Research on Values in Business,’’ Business<br />
and Society 38:3 (1999), 326–387. See also K. Blanchard and M. O’Connor,<br />
Managing by Values (San Francisco: Berrett-Koehler, 1997); Ken Hultman<br />
with Bill Gellerman, Balancing Individual and Organizational Values: Walking<br />
the Tightrope to Success (San Francisco: Pfeiffer, 2002). The classic book<br />
on values is still, of course, Milton Rokeach, The Nature of Human Values<br />
(New York: The Free Press, 1973).<br />
22. W. Davidson, C., Nemec, D., Worrell, and J. Lin, ‘‘Industrial Origin of<br />
CEOs in Outside Succession: Board Preference and Stockholder Reaction,’’<br />
Journal of Management and Governance, 6 (2002): 4.<br />
23. Linda Bushrod, ‘‘Sorting Out Succession,’’ European Venture Capital<br />
Journal, February 1, 2004, p. 1; Herbert Neubauer, ‘‘The Dynamics of Succession<br />
in Family Businesses in Western European Countries,’’ Family Business<br />
Review 16:4 (2003), 269–282; Slimane Haddadj, ‘‘Organization Change and<br />
the Complexity of Succession: A Longitudinal Case Study from France,’’ Journal<br />
of Organizational Change Management 15:2 (2003), 135–154.<br />
24. Wendi J. Everton, ‘‘Growing Your Company’s Leaders: How Great Organizations<br />
Use Succession Management to Sustain Competitive Advantage,’’<br />
The Academy of Management Executive, 18:1 (Feb. 2004), 137.
372 N OTES<br />
25. Sarah McBride, ‘‘Gray Area: In Corporate Asia, A Looming Crisis Over<br />
Succession; As Empire Founders Age, Many Fail to Lay Proper Plans; ’You Want<br />
to Get Rid of Me’; Daesung’s Three Heads,’’ Wall Street Journal, August 7<br />
2003, A1.<br />
26. Barry Came, ‘‘The Succession Question,’’ MacLean’s 112:8 (2003),<br />
44–45. [However, admittedly, this article is about national leadership succession<br />
rather than company succession.]<br />
27. Matthew Bellingham and Dione Schick, ‘‘Succession Planning-Issues<br />
for New Zealand Chartered Accountants,’’ Chartered Accountants Journal of<br />
New Zealand 82:10 (2003), 24.<br />
28. Will Hickey, ‘‘A Survey of MNC Succession Planning Effectiveness in<br />
China, Summer 2001,’’ Performance Improvement Quarterly 15:4 (2002), 20.<br />
29. William J. Rothwell, ‘‘Succession Planning and Management in Government:<br />
Dreaming the Impossible Dream,’’ IPMA-HR News 69:10 (2003), 1,<br />
7–9.<br />
30. William J. Rothwell, ‘‘Start Assessing Retiring University Officials at<br />
Your University,’’ HR on Campus 5:8 (2002), 5.<br />
31. James Olan Hutcheson, ‘‘Triple Header: For Succession Planning to<br />
Succeed, Retiring Business Owners Need Life-Planning Skills as Well as Financial<br />
Advice,’’ Financial Planning, April 1, 2004, 1; Khai Sheang Lee, Guan Hua<br />
Lim, and Wei Shi Lim, ‘‘Family Business Succession: Appropriation Risk and<br />
Choice of Successor,’’ The Academy of Management Review 28:4 (October<br />
2003), 657; William S. White, Timothy D. Krinke, and David L. Geller, ‘‘Family<br />
Business Succession Planning: Devising an Overall Strategy,’’ Journal of Financial<br />
Service Professionals 58:3 (2004), 67–86.<br />
32. William S. White, Timothy D. Krinke, and David L. Geller, ‘‘Family<br />
Business Succession Planning: Devising an Overall Strategy,’’ Journal of Financial<br />
Service Professionals 58:3 (2004), 67.<br />
33. D. Carey and D. Ogden, CEO Succession: A Window On How Boards<br />
Can Get It Right When Choosing A New Chief Executive (New York: Oxford<br />
University Press, 2000).<br />
34. A classic article that summarizes much succession research is I. Kesner<br />
and T. Sebora, ‘‘Executive Succession: Past, Present and Future,’’ Journal of<br />
Management 20:2 (1994), 327–372.<br />
35. S. Haddadj, ‘‘Organization Change and the Complexity of Succession:<br />
A Longitudinal Case Study from France,’’ Journal of Organizational Change<br />
Management 16:2 (2003), 135–153.<br />
36. ‘‘Global CEO Turnover at Record Highs,’’ Financial Executive 19:5<br />
(2003), 10.<br />
37. D. Gabriel, ‘‘Lost Leaders,’’ Telephony 243:10 (2002), 44.<br />
38. ‘‘PPG Industries Speeds, Refines Succession Preparation Process,’’<br />
Workforce Strategies 17:10 (1999), WS57–WS58.
Notes<br />
373<br />
Chapter 3<br />
1. This paragraph is based on information in C. Derr, C. Jones, and E.<br />
Toomey, ‘‘Managing High-Potential Employees: Current Practices in Thirtythree<br />
U.S. Corporations,’’ Human Resource Management 27:3 (1988), 278.<br />
For more recent information, see also William J. Rothwell and H. C. Kazanas,<br />
Building In-House Leadership and Management Development Programs<br />
(Westport, Conn.: Quorum, 1999), and David D. Dubois and William J. Rothwell,<br />
The Competency Toolkit, 2 vols. (Amherst, Mass.: HRD Press, 2000). For<br />
more recent thinking on high-potential workers, see Morgan W. McCall, Jr.,<br />
High Flyers: Developing the Next Generation of Leaders (Boston: Harvard<br />
Business School Press, 1998).<br />
2. See William J. Rothwell, The Action Learning Guidebook: A Real-Time<br />
Strategy for Problem-Solving, Training Design, and Employee Development<br />
(San Francisco: Pfeiffer, 1999).<br />
3. See S. Cunningham, ‘‘Coaching Today’s Executive,’’ Public Utilities<br />
Fortnightly 128:2 (1991), 22–25; Steven J. Stowell and Matt Starcevich, The<br />
Coach: Creating Partnerships for a Competitive Edge (Salt Lake City: The Center<br />
for Management and Organization Effectiveness, 1987).<br />
4. Charles E. Watson, Management Development Through Training (Reading,<br />
Mass.: Addison-Wesley, 1979).<br />
5. Manuel London and Stephen A. Stumpf, Managing Careers (Reading,<br />
Mass.: Addison-Wesley, 1982), p. 274.<br />
6. James E. McElwain, ‘‘Succession Plans Designed to Manage Change,’’<br />
HR Magazine 36:2 (1991), 67.<br />
7. James Fraze, ‘‘Succession Planning Should Be a Priority for HR Professionals,’’<br />
Resource, June 1988, 4.<br />
8. Ibid.<br />
9. Ibid.<br />
10. Ibid.<br />
11. Thomas North Gilmore, Making a Leadership Change: How Organizations<br />
Can Handle Leadership Transitions Successfully (San Francisco: Jossey-<br />
Bass, 1988), p. 10.<br />
12. Fraze, ‘‘Succession Planning Should Be a Priority,’’ 4.<br />
13. David W. Rhodes, ‘‘Succession Planning—Overweight and Underperforming,’’<br />
The Journal of Business Strategy 9:6 (1988), 62.<br />
14. Ibid.<br />
15. Ibid.<br />
16. See Roland Sullivan, Linda Fairburn, and William J. Rothwell, ‘‘The<br />
Whole System Transformation Conference: Fast Change for the 21st Century.’’<br />
In S. Herman, ed., Rewiring Organizations for the Networked Economy: Organizing,<br />
Managing, and Leading in the Information Age (San Francisco:<br />
Pfeiffer, 2002), p. 117.
374 N OTES<br />
17. See Jane Magruder Watkins and Bernard J. Mohr, Appreciative Inquiry:<br />
Change at the Speed of Imagination (San Francisco: Pfeiffer, 2001).<br />
18. See Diana Whitney, Amanda Trosten-Bloom, and David Cooperrider,<br />
The Power of Appreciative Inquiry: A Practical Guide to Positive Change (San<br />
Francisco: Berrett-Koehler, 2003).<br />
Chapter 4<br />
1. See R. White, ‘‘Motivation Reconsidered: The Concept of Competence,’’<br />
Psychological Review 66 (1959), 279–333.<br />
2. David C. McClelland, ‘‘Testing for Competence Rather Than for ‘Intelligence,’<br />
’’ American Psychologist, January 1973, 1–14.<br />
3. See J. C. Flanagan, ‘‘The Critical Incident Technique,’’ Psychological<br />
Bulletin, April 1954, 327–358; J. Hayes, ‘‘A New Look at Managerial Competence:<br />
The AMA Model for Worthy Performance,’’ Management Review, November<br />
1979, 2–3; Patricia McLagan, ‘‘Competency Models,’’ Training and<br />
Development Journal, December 1980, 23; L. Spencer & S. Spencer, Competence<br />
at Work: Models for Superior Performance (New York: John Wiley &<br />
Sons, 1993).<br />
4. A. R. Boyatzis, The Competent Manager: A Model for Effective Performance<br />
(New York: John Wiley & Sons, 1982), pp. 20–21.<br />
5. David D. Dubois and William J. Rothwell, The Competency Toolkit, 2<br />
vols. (Amherst, Mass.: HRD Press, 2000).<br />
6. Ibid.<br />
7. Ibid.<br />
8. See David D. Dubois, The Executive’s Guide to Competency-Based Performance<br />
Improvement (Amherst, Mass.: HRD Press, 1996); D. D. Dubois, Ed.,<br />
The Competency Case Book: Twelve Studies in Competency-Based Performance<br />
Improvement (Amherst, Mass.: HRD Press and the International Society<br />
for Performance Improvement, 1998); David D. Dubois and William J. Rothwell,<br />
The Competency Toolkit, 2 volumes (Amherst, Mass.: HRD Press, 2000);<br />
David D. Dubois and William J. Rothwell, Competency-Based Human Resource<br />
Management (Palo Alto, Calif.: Davies-Black, 2004); Jeffrey S. Shippman, Ronald<br />
A. Ash, Linda Carr, Beryl Hesketh, Kenneth Pearlman, Mariangela Battista,<br />
Lorraine D. Eyde, Jerry Kehoe, Erich Prien, and Juan Sanchez, ‘‘The Practice of<br />
Competency Modeling,’’ Personnel Psychology 53:3 (2000), 703–740.<br />
9. T. R. Athey and M. S. Orth, ‘‘Emerging Competency Methods for the<br />
Future,’’ Human Resource Management 38:3 (1999), 215–226. See also Jay A.<br />
Conger and Douglas A. Ready, ‘‘Rethinking Leadership Competencies,’’ Leader<br />
to Leader, Spring 2004, 41–47.<br />
10. David D. Dubois and William J. Rothwell, Competency-Based Human<br />
Resource Management (Palo Alto, Calif.: Davies-Black, 2004).<br />
11. Danny G. Langdon and Anne F. Marrelli, ‘‘A New Model for Systematic
Notes<br />
375<br />
Competency Identification,’’ Performance Improvement 41:4 (2002), 14–21.<br />
If you want to see a case study online for developing a competency model (but<br />
on a secure site open only to ASTD members), check out Karen Elizabeth<br />
Tabet, ‘‘Implementing a Competency Model: A Short Case Study,’’ In Practice,<br />
2004. It was found at the time this book goes to press at http://www.astd.org/<br />
astd/Publications/ASTD_Links/April2004/InPractice_Ap ri l04_Tabet.htm<br />
12. See, for instance, Susan H. Gebelein, Successful Manager’s Handbook:<br />
Development Suggestions for Today’s Managers,6 th ed. (Minneapolis: Epredix,<br />
2001).<br />
13. Bradley Agle, ‘‘Understanding Research on Values in Business,’’ Business<br />
& Society, September 1999, 326–387.<br />
14. W. G. Lee, ‘‘A Conversation with Herb Kelleher,’’ Organizational Dynamics<br />
23:2 (1994), 64–74.<br />
15. A. Farnham, ‘‘State Your Values, Hold the Hot Air,’’ Fortune, August<br />
1993, 117–124.<br />
16. See, for instance, William J. Pfeiffer, Ed., The Encyclopedia of Group<br />
Activities (San Diego: University Associates, 1989); and Barbara Singer and<br />
Kathleen Von Buren, Work Values: Facilitation Guide for Managers, Teams &<br />
Trainers (Durango, Colo.: Self-Management Institute, 1995).<br />
17. Michael Hickins, ‘‘A Day at the Races,’’ Management Review 88:5<br />
(1999), 56–61.<br />
18. W. Rothwell, ‘‘Go beyond replacing executives and manage your work<br />
and values,’’ in D. Ulrich, L. Carter, M. Goldsmith, J. Bolt, and N. Smallwood<br />
(eds.), The Change Champion’s Filedguide (Waltham, Mass.: Best Practice Publications,<br />
2003), pp. 192–204.<br />
Chapter 5<br />
1. Jac Fitz-Enz, How to Measure Human Resources Management (New<br />
York: McGraw-Hill, 1984), p. 48. See also Jac Fitz-Enz, The ROI of Human<br />
Capital (New York: AMACOM, 2000).<br />
2. Fitz-Enz, How to Measure, p. 48.<br />
3. Particularly good articles on this topic include: Paul Brauchle, ‘‘Costing<br />
Out the Value of Training,’’ Technical and Skills Training 3:4 (1992), 35–40;<br />
J. Hassett, ‘‘Simplifying ROI,’’ Training, September 1992; J. Phillips, ‘‘Measuring<br />
the Return on HRD,’’ Employment Relations Today, August 1991.<br />
4. For example, see especially the classic but dated C. Derr, C. Jones, and<br />
E. Toomey, ‘‘Managing High-Potential Employees: Current Practices in Thirtythree<br />
U.S. Corporations,’’ Human Resource Management 27:3 (1988), 273–<br />
290; O. Esman, ‘‘Succession Planning in Small and Medium-Sized Corporations,’’<br />
HR Horizons 91:103 (1991), 15–19; The Identification and Development<br />
of High Potential Managers (Palatine, Ill.: Executive Knowledgeworks,<br />
1987); Meg Kerr, Succession Planning in America’s Corporations (Palatine,
376 N OTES<br />
Ill.: Anthony J. Fresina and Associates and Executive Knowledgeworks, 1987);<br />
and E. Zajac, ‘‘CEO Selection, Succession, Compensation and Firm Performance:<br />
A Theoretical Integration and Empirical Analysis,’’ Strategic Management<br />
Journal 11:3 (1990), 217–230.<br />
5. P. Linkow, ‘‘HRD at the Roots of Corporate Strategy,’’ Training and<br />
Development Journal 39:5 (1985), 85–87; William J. Rothwell, ed., In Action:<br />
Linking HRD and Organizational Strategy (Alexandria, Va.: The American Society<br />
for Training and Development, 1998).<br />
6. Karen A. Golden and Vasudevan Ramanujam, ‘‘Between a Dream and a<br />
Nightmare: On the Integration of the Human Resource Management and Strategic<br />
Business Planning Processes,’’ Human Resource Management 24:4<br />
(1985), 429.<br />
7. William J. Rothwell and H. C. Kazanas, The Strategic Development of<br />
Talent (Amherst, Mass.: HRD Press, 2003).<br />
8. See William J. Rothwell and H. C. Kazanas, ‘‘Training: Key to Strategic<br />
Management,’’ Performance Improvement Quarterly 3:1 (1990), 42–56; and<br />
William J. Rothwell and H. C. Kazanas, Planning and Managing Human Resources:<br />
Strategic Planning for Personnel Management, 2nd ed. (Amherst,<br />
Mass.: HRD Press, 2003).<br />
9. Robert C. Camp, Benchmarking: The Search for Industry Best Practices<br />
That Lead to Superior Performance (Milwaukee, Wisc.: Quality Press/American<br />
Society for Quality Control; White Plains, N.Y.: Quality Resources, 1989), p. 3.<br />
See also Michael J. Spendolini, The Benchmarking Book (New York: AMACOM,<br />
1992).<br />
10. Ibid., p. 17.<br />
11. Diane Dormant, ‘‘The ABCDs of Managing Change,’’ in M. Smith, Ed.,<br />
Introduction to Performance Technology (Washington, D.C.: The National Society<br />
for Performance and Instruction, 1986), pp. 238–256.<br />
12. Ibid., p. 239.<br />
13. Ibid., p. 241.<br />
14. Jack Welch and John A. Byrne, Jack: Straight from the Gut (New York:<br />
Warner Business Books, 2001).<br />
15. ‘‘Business: The King Lear Syndrome: Succession Planning,’’ The Economist<br />
369:8354 (2003), 75.<br />
Chapter 6<br />
1. James L. Gibson, John M. Ivancevich, and James H. Donnelly, Jr., Organizations:<br />
Behavior, Structure, Processes, 5th ed. (Plano, Tex.: Business Publications,<br />
1985), p. 280.<br />
2. Walter R. Mahler and Stephen J. Drotter, The Succession Planning<br />
Handbook for the Chief Executive (Midland Park, N.J.: Mahler Publishing,<br />
1986), p. 8.
Notes<br />
377<br />
3. ‘‘Choosing Your Successor,’’ Chief Executive Magazine, May/June 1988,<br />
48–63; Jeffrey Sonnenfeld, The Hero’s Farewell: What Happens When CEOs<br />
Retire (New York: Oxford University Press, 1988); Richard F. Vancil, Passing<br />
the Baton: Managing the Process of CEO Succession (Boston: Harvard Business<br />
School Press, 1987); E. Zajac, ‘‘CEO Selection, Succession, Compensation<br />
and Firm Performance: A Theoretical Integration and Empirical Analysis,’’ Strategic<br />
Management Journal 11:3 (1990), 217–230. See also D. Carey and D.<br />
Ogden, CEO Succession: A Window On How Boards Can Get It Right When<br />
Choosing A New Chief Executive (New York: Oxford University Press, 2000)<br />
and<br />
4. ‘‘Global CEO Turnover at Record Highs,’’ Financial Executive 19:5<br />
(2003), 10.<br />
Chapter 7<br />
1. Allen Kraut, Patricia Pedigo, Douglas McKenna, and Marvin Dunnette,<br />
‘‘The Role of the Manager: What’s Really Important in Different Management<br />
Jobs,’’ Academy of Management Executive 3:4 (1989), 287.<br />
2. See, for instance, R. Smither, ‘‘The Return of the Authoritarian Manager,’’<br />
Training 28:11 (1991), 40–44.<br />
Chapter 8<br />
1. M. Pastin, ‘‘The Fallacy of Long-Range Thinking,’’ Training 23:5 (1986),<br />
47–53.<br />
2. B. Staw, ‘‘Knee-Deep in the Big Muddy,’’ Organizational Behavior and<br />
Human Performance 16:1 (1976), 27–44.<br />
3. Karen Stephenson and Valdis Krebs, ‘‘A More Accurate Way to Measure<br />
Diversity,’’ Personnel Journal 72:10 (1993), 66–72, 74.<br />
4. Rosabeth Moss Kanter, The Men and Women of the Corporation (New<br />
York: Basic Books, 1977), p. 48.<br />
5. Ibid.<br />
6. Glenn E. Baker, A. Grubbs, and Thomas Ahern, ‘‘Triangulation:<br />
Strengthening Your Best Guess,’’ Performance Improvement Quarterly 3:3<br />
(1990), 27–35.<br />
7. Arthur W. Sherman, Jr., George W. Bohlander, and Herbert Chruden,<br />
Managing Human Resources, 8th ed. (Cincinnati: South-Western Publishing<br />
Co., 1988), pp. 95–96.<br />
8. For one excellent approach, see Roger J. Plachy and Sandra J. Plachy,<br />
Results-Oriented Job Descriptions (New York: AMACOM, 1993). See also<br />
Model Job Descriptions for Business (N.p.: Local Government Institute, 1997).<br />
9. W. Barlow and E. Hane, ‘‘A Practical Guide to the Americans with Disabilities<br />
Act,’’ Personnel Journal 71:6 (1992), 54.
378 N OTES<br />
10. Kenneth E. Carlisle, Analyzing Jobs and Tasks (Englewood Cliffs, N.J.:<br />
Educational Technology Publications, 1986), p. 5.<br />
11. See Barlow and Hane, ‘‘A Practical Guide,’’ 53–60; M. Chalker, ‘‘Tooling<br />
Up for ADA,’’ HR Magazine, December 1991, 61–63, 65; and J. Kohl and<br />
P. Greenlaw, ‘‘The Americans with Disabilities Act of 1990: Implications for<br />
Managers,’’ Sloan Management Review 33:3 (1992), 87–90.<br />
12. See, for instance, Roger J. Plachy and Sandra J. Plachy, Results-Oriented<br />
Job Descriptions (New York: AMACOM, 1993).<br />
13. William J. Rothwell, ‘‘HRD and the Americans with Disabilities Act,’’<br />
Training and Development 45:8 (1991), 45–47.<br />
14. Richard Boyatzis, The Competent Manager: A Model for Effective Performance<br />
(New York: John Wiley & Sons, 1982).<br />
15. David Dubois, Competency-Based Performance Improvement: A Strategy<br />
for Organizational Change (Amherst, Mass.: HRD Press, 1993), p. 9.<br />
16. Ibid.<br />
17. R. Norton, Dacum Handbook (Columbus, Ohio: The National Center<br />
for Research in Vocational Education, The Ohio State University, 1985). See<br />
also D. Faber, E. Fangman, and J. Low, ‘‘DACUM: A Collaborative Tool for<br />
Workforce Development,’’ Journal of Studies in Technical Careers 13:2<br />
(1991), 145–159.<br />
18. Ibid., pp. 1–2.<br />
19. See A. Osborn, Applied Imagination, 3rd ed. (New York: Scribner,<br />
1963); A. Van Gundy, Techniques of Structured Problem Solving (New York:<br />
Van Nostrand Reinhold, 1981); Michael Michalko, Thinkertoys: A Handbook<br />
of Business Creativity for the 90s (Berkeley, Calif.: Ten Speed Press, 1991);<br />
Dario Nardi, Multiple Intelligences and Personality Type: Tools and Strategies<br />
for Developing Human Potential (Huntington Beach, Calif.: Telos Publications,<br />
2001); Pamela Meyer, Quantum Creativity (New York: McGraw-Hill,<br />
2000).<br />
20. A. Van Gundy, Techniques of Structured Problem Solving.<br />
21. G. Huet-Cox, T. M. Nielsen, and E. Sundstrom, ‘‘Get the Most From<br />
360-Degree Feedback: Put It on the Internet,’’ HR Magazine 44:5 (1999), 92–<br />
103; ‘‘Finding Leaders: How Ameritech Feeds Its Pipeline,’’ Training Directors’<br />
Forum Newsletter 15:5 (1999), 4.<br />
22. Leanne Atwater and David Waldman, ‘‘Accountability in 360-Degree<br />
Feedback,’’ HR Magazine 43:6 (1998), 96–104. The article asserts that over 90<br />
percent of Fortune 1000 companies use some form of multisource assessment.<br />
For more information on full-circle, multirater assessment, see David D. Dubois<br />
and William J. Rothwell, The Competency Toolkit, 2 vols. (Amherst, Mass.:<br />
HRD Press, 2000); Keith Morical, ‘‘A Product Review: 360 Assessments,’’ Training<br />
and Development 53:4 (1999), 43–47; Kenneth Nowack, Jeanne Hartley,<br />
and William Bradley, ‘‘How to Evaluate Your 360-Feedback Efforts,’’ Training<br />
& Development 53:4 (1999), 48–53; David Waldman and David E. Bowen,<br />
‘‘The Acceptability of 360-Degree Appraisals: A Customer-Supplier Relation-
Notes<br />
379<br />
ship Perspective,’’ Human Resource Management 37:2 (1998), 117–129.<br />
Other recent writings on 360-degree assessment include Anne Freedman,<br />
‘‘The Evolution of 360s,’’ Human Resource Executive, 16:17 (2002), 47–51;<br />
Marnie E. Green, ‘‘Ensuring the Organization’s Future: A Leadership Development<br />
Case Study,’’ Public Personnel Management 31:4 (2002), 431–439; Fred<br />
Luthans and Suzanne J. Peterson, ‘‘360-Degree Feedback with Systematic<br />
Coaching: Empirical Analysis Suggests a Winning Combination,’’ Human Resource<br />
Management 42:3 (2003), 243–256; Bruce Pfau and Ira Kay, ‘‘Does<br />
360-Degree Feedback Negatively Affect Company Performance?’’, HR Magazine<br />
47:6 (2002), 54–59; Scott Wimer, ‘‘The Dark Side of 360-Degree Feedback,’’<br />
T D 56:9 (2002), 37–42.<br />
23. See, for instance, Paul J. Taylor and Jon L. Pierce, ‘‘Effects of Introducing<br />
a Performance Management System on Employees’ Subsequent Attitudes<br />
and Effort,’’ Public Personnel Management 28:3 (1999), 423–452.<br />
24. See, for instance, Performance Appraisals: The Ongoing Legal Nightmare<br />
(Ramsey, N.J.: Alexander Hamilton Institute, 1993).<br />
25. Mary Walton, The Deming Management Method (New York: Perigee<br />
Books, 1986), p. 91.<br />
26. See, for instance, S. Cunningham, ‘‘Coaching Today’s Executive,’’ Public<br />
Utilities Fortnightly 128:2 (1991), 22–25; David L. Dotlich and Peter C.<br />
Cairo, Action Coaching: How to Leverage Individual Performance for Company<br />
Success (San Francisco: Jossey-Bass, 1999); Steven J. Stowell and Matt<br />
Starcevich, The Coach: Creating Partnerships for a Competitive Edge (Salt<br />
Lake City: The Center for Management and Organization Effectiveness, 1987).<br />
27. BLR Encyclopedia of Performance Appraisal (Madison, Conn.: Business<br />
and Legal Reports, 1985). See also Richard C. Grote, The Complete Guide<br />
to Performance Appraisal (New York: AMACOM, 1996).<br />
28. David D. Dubois and William J. Rothwell, Competency-Based Human<br />
Resource Management (Palo Alto, Calif.: Davies-Black, 2004).<br />
29. Paul Kaihla, ‘‘Getting Inside the Boss’s Head,’’ Business 2.0 4:10<br />
(2003), 49.<br />
30. Scott Highhouse, ‘‘Assessing the Candidate as a Whole: A Historical<br />
and Critical Analysis of Individual Psychological Assessment for Personnel Decision-Making,’’<br />
Personnel Psychology 55:2 (2002), 363–396.<br />
Chapter 9<br />
1. See William J. Rothwell and H. C. Kazanas, Planning and Managing<br />
Human Resources: Strategic Planning for Personnel Management, 2nd ed.<br />
(Amherst, Mass.: HRD Press, 2003).<br />
2. William J. Rothwell and H. C. Kazanas, ‘‘Developing Management Employees<br />
to Cope with the Moving Target Effect,’’ Performance and Instruction<br />
32:8 (1993), 1–5.
380 N OTES<br />
3. See, for instance, Newman S. Peery, Jr., and Mahmoud Salem, ‘‘Strategic<br />
Management of Emerging Human Resource Issues,’’ Human Resource Development<br />
Quarterly 4:1 (1993), 81–95; Raynold A. Svenson and Monica J. Rinderer,<br />
The Training and Development Strategic Plan Workbook (Englewood<br />
Cliffs, N.J.: Prentice-Hall, 1992). For works specifically on environmental<br />
scanning, see F. Aguilar, Scanning the Business Environment (New York: Macmillan,<br />
1967); Patrick Callan, Ed., Environmental Scanning for Strategic Leadership<br />
(San Francisco: Jossey-Bass, 1986); L. Fahey, W. King, and V. Narayanan,<br />
‘‘Environmental Scanning and Forecasting in Strategic Planning—The State of<br />
the Art,’’ Long Range Planning 14:1 (1981), 32–39; R. Heath and Associates,<br />
Strategic Issues Management: How Organizations Influence and Respond to<br />
Public Interests and Policies (San Francisco: Jossey-Bass, 1988).<br />
4. Harry Levinson, Organizational Diagnosis (Cambridge, Mass.: Harvard<br />
University Press, 1972); A. O. Manzini, Organizational Diagnosis (New York:<br />
AMACOM, 1988); and Marvin Weisbord, Organizational Diagnosis: A Workbook<br />
of Theory and Practice (Reading, Mass.: Addison-Wesley, 1978).<br />
5. This is an issue of classic debate: Does structure affect strategy or does<br />
strategy affect structure? The first discussion appears in A. Chandler, Strategy<br />
and Structure: Chapters in the History of American Industrial Enterprise<br />
(Cambridge, Mass.: Massachusetts Institute of Technology, 1962). Other authors<br />
are not sure that strategy always affects structure. See, for instance, J.<br />
Galbraith and D. Nathanson, ‘‘The Role of Organizational Structure and Process<br />
in Strategy Implementation,’’ in D. Schendel and C. Hofer, Eds., Strategic<br />
Management (Boston: Little, Brown and Co., 1979).<br />
6. See Kees Van Der Heijden, Scenarios: The Art of Strategic Conversation<br />
(New York: John Wiley & Sons, 1996); and William J. Rothwell and H. C. Kazanas,<br />
The Strategic Development of Talent (Amherst, Mass.: HRD Press, 2003).<br />
7. See, for instance, the classic article by J. Wissema, A. Brand, and H.<br />
Van Der Pol, ‘‘The Incorporation of Management Development in Strategic<br />
Management,’’ Strategic Management Journal 2 (1981), 361–377.<br />
8. See remarks in Larry Davis and E. McCallon, Planning, Conducting,<br />
Evaluating Workshops (Austin, Tex.: Learning Concepts, 1974).<br />
9. Rothwell and Kazanas, ‘‘Developing Management Employees,’’ 1–5.<br />
10. See Rothwell and Kazanas, Planning and Managing Human Resources.<br />
11. Melvin Sorcher, Predicting Executive Success: What It Takes to Make<br />
It Into Senior Management (New York: John Wiley & Sons, 1985), p. 2.<br />
12. William J. Rothwell and H. C. Kazanas, Building In-House Leadership<br />
and Management Development Programs (Westport, Conn.: Quorum Books,<br />
1999).<br />
13. Ibid.<br />
14. See the classic study: E. Lindsey, V. Homes, and M. McCall, Key Events<br />
in Executives’ Lives (Greensboro, N.C.: The Center for Creative Leadership,<br />
1987).<br />
15. This approach is described at length in George S. Odiorne, Strategic
Notes<br />
381<br />
Management of Human Resources: A Portfolio Approach (San Francisco: Jossey-Bass,<br />
1984).<br />
16. Ibid.<br />
17. Ibid.<br />
18. Ibid.<br />
19. Ibid.<br />
20. Rose Mary Wentling, ‘‘Women in Middle Management: Their Career<br />
Development and Aspirations,’’ Business Horizons (January-February 1992),<br />
47–54.<br />
21. ‘‘Assessment Centres Show Signs of Growth’’ (2004, February 24), 47.<br />
22. Cam Caldwell, George C. Thornton III, and Melissa L Gruys. ‘‘Ten<br />
Classic Assessment Center Errors: Challenges to Selection Validity.’’ Public<br />
Personnel Management 32:1 (2003), 73–88.<br />
23. For more on assessment centers, see: International Task Force on Assessment<br />
Center Guidelines, ‘‘Guidelines and Ethical Considerations for Assessment<br />
Center Operations: International Task Force on Assessment Center<br />
Guidelines,’’ Public Personnel Management 29:3 (2000), 315–331; P. G. Jansen<br />
and B. A. M. Stoop, ‘‘The Dynamics of Assessment Center Validity: Results<br />
of a 7-Year Study,’’ Journal of Applied Psychology 86:4 (2001), 741–753; G. C.<br />
Thornton, Assessment Centers in Human Resource Management (Reading,<br />
Mass.: Addison-Wesley, 1992); A. Tziner, S. Ronen, and D. Hacohen, ‘‘A Fouryear<br />
Validation Study of an Assessment Center in a Financial Corporation,‘‘<br />
Journal of Organizational Behavior 14 (1993), 225–237.<br />
Chapter 10<br />
1. Walter R. Mahler and Stephen J. Drotter, The Succession Planning<br />
Handbook for the Chief Executive (Midland Park, N.J.: Mahler Publishing Co.,<br />
1986).<br />
2. Peter F. Drucker, ‘‘How to Make People Decisions,’’ Harvard Business<br />
Review 63:4 (1985), 22–26.<br />
3. Lawrence S. Kleiman and Kimberly J. Clark, ‘‘User’s Satisfaction with<br />
Job Posting,’’ Personnel Administrator 29:9 (1984), 104–108.<br />
4. Lawrence S. Kleiman and Kimberly J. Clark, ‘‘An Effective Job Posting<br />
System,’’ Personnel Journal 63:2 (1984), 20–25.<br />
5. Malcolm Knowles, Using Learning Contracts: Practical Approaches to<br />
Individualizing and Structuring Learning (San Francisco: Jossey-Bass, 1986),<br />
pp. 28–32.<br />
6. R. Fritz, Personal Performance Contracts: The Key to Job Success (Los<br />
Altos, Calif.: Crisp, 1987).<br />
7. Arthur X. Deegan II, Succession Planning: Key to Corporate Excellence<br />
(New York: Wiley-Interscience, 1986), p. 167.<br />
8. Robert F. Mager, Preparing Instructional Objectives, 2nd ed. (Belmont,<br />
Calif.: Lear-Siegler, 1975).
382 N OTES<br />
9. M. Lombardo and R. Eichinger, Eighty-eight Assignments for Development<br />
in Place: Enhancing the Developmental Challenge of Existing Jobs<br />
(Greensboro, N.C.: The Center for Creative Leadership, 1989).<br />
10. A. Huczynski, Encyclopedia of Management Development Methods<br />
(London: Gower, 1983).<br />
11. See, for instance, Paul R. Yost and Mary Mannion Plunkett, ‘‘Turn Business<br />
Strategy Into Leadership Development,’’ T D 56:3 (2002), 48–51.<br />
12. See, for instance, William J. Rothwell and H. C. Kazanas, Building In-<br />
House Leadership and Management Development Programs (Westport,<br />
Conn.: Quorum, 1999) and Marshall Tarley, ‘‘Leadership Development for<br />
Small Organizations,’’ T D 56:3 (2002), 52–55.<br />
13. Maryse Dubouloy, ‘‘The Transitional Space and Self-Recovery: A Psychoanalytical<br />
Approach to High-Potential Managers’ Training,’’ Human Relations<br />
57:4 (2004), 467–496; ‘‘A Formal Coaching Program,’’ Sales and<br />
Marketing Management, 156:7 (2004), 14; Stephen Hrop, ‘‘Coaching Across<br />
Cultures: New Tools for Leveraging National, Corporate, and Professional Differences,’’<br />
Personnel Psychology 57:1 (2004), 220–223; Leigh Rivenbark,<br />
‘‘Adaptive Coaching,’’ HR Magazine 49:5 (2004), 128–129; Mark Rotella, Sarah<br />
F Gold, Lynn Andriani, Michael Scharf, and Emily Chenoweth, ‘‘Leverage Your<br />
Best, Ditch The Rest: The Coaching Secrets Top Executives Depend On,’’ Publishers<br />
Weekly 251:20 (2004), 45.<br />
14. Chris Bones, ‘‘Coaching? It’s What Managers Are For,’’ Human Resources,<br />
June 2004, 14.<br />
15. James M. Hunt and Joseph R. Weintraub, The Coaching Manager: Developing<br />
Top Talent in Business (Thousand Oaks, Calif.: Sage Publications,<br />
2002).<br />
16. See the Coaching Federation of Canada Web site (http://www<br />
.coach.ca/e/nccp/) and an ERIC Web site with a list of them available, at least<br />
on 17 July 2004, at http://www.ericdigests.org/pre-9212/coaching.htm<br />
17. See, for instance, http://www.coachfederation.org/credentialing/en/<br />
core.htm. [That is the Web site of the International Coaching Federation,<br />
which has a competency model for coaching on the Web in downloadable<br />
format.]<br />
18. Heather Johnson, ‘‘The Ins and Outs of Executive Coaching,’’ Training<br />
41:5 (2004), 36–41.<br />
19. See, for instance, the Worldwide Association of Business Coaches at<br />
http://www.wabccoaches.com/.<br />
20. See, for an example, http://mycoach.com/ethics_abeta.shtml<br />
21. See http://www.execcoach.net/Competences.htm<br />
22. Edgar Schein, Process Consultation Revisited: Building the Helping<br />
Relationship (Reading, Mass.: Addison-Wesley, 1998).<br />
23. S. J. Armstrong, C. W. Allinson, and J. Hayes, ‘‘Formal Mentoring Systems:<br />
An Examination of the Effects of Mentor/Protégé Cognitive Styles on the
Notes<br />
383<br />
Mentoring Process,’’ The Journal of Management Studies 39 (December<br />
2002), 1111–1137; N. Bozionelos, ‘‘Mentoring Provided: Relation to Mentor’s<br />
Career Success, Personality, and Mentoring Received,’’ Journal of Vocational<br />
Behavior 64 (February 2004), 24–46; C. Conway, Strategies for Mentoring: A<br />
Blueprint for Successful Organizational Development (New York: John<br />
Wiley & Sons, 1998); V. M. Godshalk and J. J. Sosik, ‘‘Does Mentor-Protégé<br />
Agreement on Mentor Leadership Behavior Influence the Quality of a Mentoring<br />
Relationship?’’ Group and Organization Management 25 (September<br />
2000), 291–317; B.A. Hamilton and T. A. Scandura, ‘‘E-Mentoring: Implications<br />
for Organizational Learning and Development in a Wired World,’’ Organizational<br />
Dynamics 31:4 (2003), 388–402.<br />
24. Reg Revans, Developing Effective Managers (New York: Praeger,<br />
1971).<br />
25. David L. Dotlich and James L. Noel, Action Learning : How the World’s<br />
Top Companies are Re-Creating Their Leaders and Themselves (San Francisco:<br />
Jossey-Bass, 1998); Ian McGill and Liz Beaty, Action Learning: A Guide for<br />
Professional, Management & Educational Development, 2nd ed. (New York:<br />
Taylor and Francis, 2001); Michael Marquardt, Action Learning in Action:<br />
Transforming Problems and People for World-Class Organizational Learning<br />
(Palo Alto, Calif.: Davies-Black, 1999); Michael Marquardt, Optimizing the<br />
Power of Action Learning: Solving Problems and Building Leaders in Real<br />
Time (Palo Alto, Calif.: Davies-Black, 2004).<br />
26. Michael Marquardt, ‘‘Harnessing the Power of Action Learning,’’<br />
T D 58:6 (2004), 26–32.<br />
27. William J. Rothwell, The Action Learning Guidebook: A Real-Time<br />
Strategy for Problem-Solving, Training Design, and Employee Development<br />
(San Francisco: Jossey-Bass/Pfeiffer, 1999).<br />
Chapter 11<br />
1. James L. Adams, Conceptual Blockbusting: A Guide to Better Ideas, 3rd<br />
ed. (Reading, Mass.: Addison-Wesley, 1986), p. 7.<br />
2. Michael Hammer and James Champy, Reegineering the Corporation: A<br />
Manifesto for Business Revolution (New York: HarperBusiness, 1993), p. 32.<br />
3. G. Rummler and A. Brache, ‘‘Managing the White Space,’’ Training 28:1<br />
(1991), 55–70.<br />
4. See Eva Kaplan-Leiserson, ‘‘Aged to Perfection,’’ TD 55:10 (2001),<br />
16–17; and Neil Lebovits, ‘‘Seniors Returning to the Accounting Workforce:<br />
Supply Meets Demand,’’ The CPA Journal, 73:11 (2003), 14.<br />
5. Anne Freedman, ‘‘What Shortage?’’ Human Resource Executive 18:4<br />
(2004), 26–28.<br />
6. Dayton Fandray, ‘‘Gray Matters,’’ Workforce 79:7 (2000), 26–32.
384 N OTES<br />
Chapter 12<br />
1. For assistance in conceptualizing a skill inventory and/or a recordkeeping<br />
system for that purpose, see D. Gould, Personnel Skills Inventory Skill<br />
Study (Madison, Conn.: Business and Legal Reports, 1986).<br />
Chapter 13<br />
1. William J. Rothwell and Henry J. Sredl, The American Society for Training<br />
and Development Reference Guide to Workplace Learning and Performance,<br />
3rd ed., 2 vols. (Amherst, Mass.: HRD Press, 2000).<br />
2. See Nancy Dixon, Evaluation: A Tool for Improving HRD Quality (Alexandria,<br />
Va.: The American Society for Training and Development, 1990); Jack<br />
Phillips, Handbook of Training Evaluation and Measurement Methods, 2nd<br />
ed. (Houston: Gulf Publishing, 1991); Leslie Rae, How to Measure Training<br />
Effectiveness (Brookfield, Vt.: Gower Publishing, 1991); William J. Rothwell,<br />
Ed., Creating, Measuring and Documenting Service Impact: A Capacity Building<br />
Resource: Rationales, Models, Activities, Methods, Techniques, Instruments<br />
(Columbus, Ohio: The Enterprise Ohio Network, 1998).<br />
3. Paul Brauchle, ‘‘Costing Out the Value of Training,’’ Technical and<br />
Skills Training 3:4 (1992), 35–40; W. Cascio, Costing Human Resources: The<br />
Financial Impact of Behavior in Organizations, 2nd ed. (Boston: PWS-Kent<br />
Publishing, 1987); C. Fauber, ‘‘Use of Improvement (Learning) Curves to Predict<br />
Learning Costs,’’ Production and Inventory Management 30:3 (1989),<br />
57–60; T. Jackson, Evaluation: Relating Training to Business Performance<br />
(San Diego: Pfeiffer and Company, 1989); L. Spencer, Calculating Human Resource<br />
Costs and Benefits (Somerset, N.J.: John Wiley and Sons, 1986); Richard<br />
Swanson and Deane Gradous, Forecasting Financial Benefits of Human Resource<br />
Development (San Francisco: Jossey-Bass, 1988).<br />
4. See Donald Kirkpatrick, ‘‘Techniques for Evaluating Training Programs,’’<br />
Journal of the American Society for Training and Development [now<br />
called T D] 14:1 (1960), 13–18.<br />
5. R. Brinkerhoff, ‘‘The Success Case: A Low-Cost High-Yield Evaluation,’’<br />
Training and Development Journal 37:8 (1983), 58–61. See also Rothwell,<br />
Ed., Creating, Measuring and Documenting Service Impact.<br />
6. See William J. Rothwell and H. C. Kazanas, Planning and Managing<br />
Human Resources: Strategic Planning for Personnel Management, 2nd ed.<br />
(Amherst, Mass.: HRD Press, 2003).<br />
Chapter 14<br />
1. See Pamela Babcock, ‘‘Slicing Off Pieces of HR,’’ HR Magazine 49:7<br />
(2004), 70; Karen Colteryahn and Patty Davis, ‘‘8 Trends You Need to Know<br />
Now,’’ T D 58:1 (2004), 28–36; Simon Kent, ‘‘When Is Enough, Enough?’’
Notes<br />
385<br />
Personnel Today, June 15, 2004, 7; James F. Orr, ‘‘Outsourcing Human Resources,’’<br />
Chief Executive, June 2004, 16; Sara L. Rynes, ‘‘’Where Do We Go<br />
From Here?’ Imagining New Roles for Human Resources,’’ Journal of Management<br />
Inquiry 13:3 (2004), 203–213; William B. Scott and Carole Hedden,<br />
‘‘People Issues: Good Leaders, Ethics, Growth Opportunities Rank High on<br />
Employee Preference Lists,’’ Aviation Week and Space Technology 160:18<br />
(2004), 61; Uyen Vu, ‘‘HR Responds to Cost Crunch with Workforce Cuts:<br />
Survey,’’ Canadian HR Reporter 17:11 (2004), 1–2; Joe Willmore, ‘‘The Future<br />
of Performance,’’ T D, August 2004, 26–31, 49, 53; Ron Zemke, ‘‘The Confidence<br />
Crisis,’’ Training 41:6 (2004), 22–27.<br />
2. Anonymous, ‘‘An HR Outsourcing Report,’’ Employee Benefit Plan Review<br />
59:1 (2004), 5–6; ‘‘The Return of Work/Life Plans,’’ HR Focus 81:4<br />
(2004), 1–3; Damon Cline, ‘‘Companies Seeking ‘Right’ Candidates Increasingly<br />
Turn to Personality Tests,’’ Knight Ridder Tribune Business News, March<br />
9, 2004, 1; Kristine Ellis, ‘‘Top Training Strategies,’’ Training 40:7 (2003),<br />
30–36; Brandon Hall, ‘‘Time to Outsource?’’, Training 41:6 (2004), 14; Fay<br />
Hansen, ‘‘Currents in Compensation and Benefits,’’ Compensation and Benefits<br />
Review 36:3 (2004), 6–25.<br />
3. Craig E. Aronoff and Christopher J. Eckrich, ‘‘Trends in Family-Business<br />
Transitions,’’ Nation’s Business 87:5 (1999), 62–63; John Beeson, ‘‘Succession<br />
Planning,’’ Across the Board 37:2 (2000), 38–41; Ram Charan and Geoffrey<br />
Colvin, ‘‘The Right Fit,’’ Fortune 141:8 (2000), 226–233; Robert J. Grossman,<br />
‘‘HR On the Board,’’ HR Magazine 49:6 (2004), 56–63; William J. Rothwell,<br />
‘‘What’s Special about CEO Succession?’’ Global CEO Magazine, March 2004,<br />
15–20; William J. Rothwell, ‘‘Knowledge Transfer: 12 Strategies For Succession<br />
Management,’’ IPMA-HR News, July 2004, 10–12; William J. Rothwell, ‘‘Competency-Based<br />
Succession Planning: Do I Fit In? The Individual’s Role in Succession<br />
Planning,’’ Career Planning and Adult Development Journal 18:4<br />
(2003), 120–135; William J. Rothwell, ‘‘Succession Planning and Management<br />
in Government: Dreaming the Impossible Dream,’’ IPMA-HR News 69:10<br />
(2003), 1, 7—9; William J. Rothwell and Christopher Faust, ‘‘Managing the<br />
Quiet Crisis: The Impact of an Effective Succession Plan: Leveraging Web-<br />
Based Human Capital Management Systems to Plan for the Future and Manage<br />
the Talent Pool Today,’’ Published online at http://www.softscape.com/white<br />
papers/whitepapers.htm.; William J. Rothwell ‘‘Beyond Succession Management:<br />
New Directions and Fresh Approaches,’’ Linkage Link and Learn Newsletter,<br />
published at http://www.linkageinc.com/newsletter/archives/leadership/<br />
beyond_succession erothwell.shtml.; William J. Rothwell, ‘‘Go Beyond Replacing<br />
Executives and Manage Your Work and Values,’’ in D. Ulrich, L. Carter, M.<br />
Goldsmith, J. Bolt & N. Smallwood (Eds.), The Change Champion’s Fieldguide<br />
(pp. 192–204). (Waltham, Mass.: Best Practice Publications, 2003); George B.<br />
Yancey, ‘‘Succession Planning Creates Quality Leadership,’’ Credit Union Executive<br />
Journal 41:6 (2001), 24–27.<br />
4. Susan Ladika, ‘‘Executive Protection: Terror Alerts and Corporate Board
386 N OTES<br />
Liability Are Focusing New Attention on Security Issues for Top Company Officers,’’<br />
HR Magazine 49:10 (2004), 105–106, 108–109.<br />
5. See Thomas Hoffman, ‘‘Labor Gap May Drive Mergers,’’ Online News,<br />
July 13, 1998, at http://www.idg.net/crd[lh.5,p6]it[lh.5,p6]9–65593.html.<br />
6. Jennifer Reingold and Diane Brady, ‘‘Brain Drain,’’ Business Week, September<br />
20, 1999, 112–115, 118, 120, 124, 126.<br />
7. Ibid.<br />
8. Ibid.<br />
9. Leslie Gross Klaff, ‘‘Thinning the Ranks of the ’Career Expats,’ ’’ Workforce<br />
Management 83:10 (2004), 84–84, 86–87.<br />
10. W. Rothwell and S. Poduch, ‘‘Introducing Technical (Not Managerial)<br />
Succession Planning,’’ Personnel Management, 33(4), 2004, pp. 405–420.
WHAT’S ON THE CD?<br />
Selected Worksheets and Resources from the Book<br />
Exhibit 2-1. An Assessment Questionnaire: How Well Is Your Organization<br />
Managing the Consequences of Trends Influencing Succession Planning<br />
and Management?<br />
Exhibit 3-2. Assessment Questionnaire for Effective Succession Planning and<br />
Management<br />
Exhibit 3-3. A Simple Exercise to Dramatize the Need for Succession Planning<br />
and Management<br />
Exhibit 5-4. A Questionnaire for Assessing the Status of Succession Planning<br />
and Management in an Organization<br />
Exhibit 5-5. A Worksheet for Demonstrating the Need for Succession Planning<br />
and Management<br />
Exhibit 5-6. An Interview Guide for Determining the Requirements for a Succession<br />
Planning and Management Program<br />
Exhibit 5-7. An Interview Guide for Benchmarking Succession Planning and<br />
Management Practices<br />
Exhibit 6-3. A Worksheet to Formulate a Mission Statement for Succession<br />
Planning and Management<br />
Exhibit 6-4. A Sample Succession Planning and Management Policy<br />
Exhibit 6-6. An Activity for Identifying Initial Targets for Succession Planning<br />
and Management Activities<br />
Exhibit 6-7. An Activity for Establishing Program Priorities in Succession Planning<br />
and Management<br />
Exhibit 6-8. Handout: U.S. Labor Laws<br />
Exhibit 7-1. A Worksheet for Preparing an Action Plan to Establish the Succession<br />
Planning and Management Program<br />
Exhibit 8-1. A Worksheet for Writing a Key Position Description<br />
Exhibit 8-2. A Worksheet for Considering Key Issues in Full-Circle, Multirater<br />
Assessments<br />
Exhibit 8-5. A Worksheet for Developing an Employee Performance Appraisal<br />
Linked to a Position Description<br />
Exhibit 9-1. A Worksheet for Environmental Scanning<br />
387
388 W HAT’S ONTHECD?<br />
Exhibit 9-2. An Activity on Organizational Analysis<br />
Exhibit 9-3. An Activity for Preparing Realistic Scenarios to Identify Future Key<br />
Positions<br />
Exhibit 9-4. An Activity for Preparing Future-Oriented Key Position Descriptions<br />
Exhibit 9-5. Steps in Conducting Future-Oriented ‘‘Rapid Results Assessment’’<br />
Exhibit 9-6. How to Classify Individuals by Performance and Potential<br />
Exhibit 9-7. A Worksheet for Making Global Assessments<br />
Exhibit 9-8. A Worksheet to Identify Success Factors<br />
Exhibit 9-9. An Individual Potential Assessment Form<br />
Exhibit 10-1. A Sample Replacement Chart Format: Typical Succession Planning<br />
and Management Inventory for the Organization<br />
Exhibit 10-2. Succession Planning and Management Inventory by Position<br />
Exhibit 10-4. A Worksheet for Preparing Learning Objectives Based on Individual<br />
Development Needs<br />
Exhibit 10-5. A Worksheet for Identifying the Resources Necessary to Support<br />
Developmental Experiences<br />
Exhibit 10-7. A Sample Individual Development Plan<br />
Exhibit 10-8. Methods of Grooming Individuals for Advancement<br />
Exhibit 10-9. Key Strategies for Internal Development<br />
Exhibit 11-1. Deciding When Replacing a Key Job Incumbent Is Unnecessary:<br />
A Flowchart<br />
Exhibit 11-2. A Worksheet for Identifying Alternatives to the Traditional Approach<br />
to Succession Planning and Management<br />
Exhibit 12-4. A Worksheet for Brainstorming When and How to Use Online<br />
and High-Tech Methods<br />
Exhibit 13-3. A Worksheet for Identifying Appropriate Ways to Evaluate Succession<br />
Planning and Management in an Organization<br />
Exhibit 13-4. A Sample ‘‘Incident Report’’ for Succession Planning and Management<br />
Exhibit 13-5. Steps for Completing a Program Evaluation of a Succession Planning<br />
and Management Program<br />
Exhibit 13-6. A Checksheet for Conducting a Program Evaluation for the Succession<br />
Planning and Management Program<br />
Exhibit 14-1. A Worksheet to Structure Your Thinking about Predictions for<br />
Succession Planning and Management in the Future<br />
Exhibit 14-2. A Worksheet to Structure Your Thinking about Alternative Approaches<br />
to Meeting Succession Needs<br />
Exhibit 14-7. Important Characteristics of Career Planning and Management<br />
Programs<br />
Exhibit 14-8. An Assessment Sheet for Integrating Career Planning and Management<br />
Programs with Succession Planning and Management Programs
What’s on the CD?<br />
389<br />
Also:<br />
▲ Effective Succession Planning: A Fully Customizable Leader Guide for<br />
The Manager’s Role in Succession Planning<br />
▲ Effective Succession Planning: A Fully Customizable Participant Guide<br />
for The Manager’s Role in Succession Planning<br />
▲ PowerPoint Slides to Accompany The Manager’s Role in Succession<br />
Planning<br />
▲ Assessment Instrument for Use with The Manager’s Role in Succession<br />
Planning<br />
▲ Executive Assessment Instrument for Use with The Manager’s Role in<br />
Succession Planning<br />
▲ PowerPoint Slides to Accompany Executive Briefing on Succession Planning<br />
▲ Frequently-Asked Questions About Succession Planning (from the<br />
Book) for Use with the Executive Briefing on Succession Planning<br />
▲ Effective Succession Planning: A Fully Customizable Leader Guide for<br />
Mentoring from A to Z<br />
▲ Effective Succession Planning: A Fully Customizable Participant Guide<br />
for Mentoring from A to Z<br />
▲ PowerPoint Slides to Accompany Mentoring from A to Z
This page intentionally left blank
INDEX<br />
ABCD model, 118–121<br />
accomplishment, evidence of, 240<br />
accountability, 345–346<br />
accounting, 53<br />
acquisitions, 313, 329<br />
action learning, 74, 255–256<br />
action plans<br />
communication of, 147–160<br />
components of effective, 156–157<br />
preparation of, 156–158<br />
technological support for, 280, 283<br />
active roles, 128, 129<br />
Adams, James L., on problem-solving, 257–258<br />
adopted children, 154<br />
adopters, 119–120<br />
advancement, 36<br />
Advance Organizer, 1–4<br />
advisory boards, 362<br />
affirmative action, 149<br />
Aftercare program, 351<br />
Age Discrimination in Employment Act (ADEA)<br />
(1967), 150, 154<br />
agenda, 231, 283<br />
aging workforce, xviii, xx, 45, 122<br />
agriculture, 152<br />
alternative corporate headquarters, xvii<br />
AMACOM, see American Management Association<br />
ambassadors, 345<br />
American Management Association (AMACOM), 69,<br />
114<br />
American Society for Training and Development<br />
(ASTD), 17, 20, 114<br />
Americans with Disabilities Act (ADA) (1990), 153,<br />
154, 185, 187<br />
anecdotal evaluation, 296, 300<br />
anecdotes, 96<br />
application service provider (ASP) model, 340<br />
appraisals of individual performance, see performance<br />
appraisals<br />
appreciative inquiry (AI), 77<br />
‘‘Ask, formulate, and establish’’ approach, 132,<br />
136, 138<br />
assessment(s)<br />
with assessment centers, 221–222<br />
of current practices, 98–104<br />
of current problems, 96–97<br />
full-circle, multirater, see full-circle, multirater<br />
assessments<br />
of future individual potential, 80<br />
of future work/people requirements, 80<br />
of individual potential, see individual potential<br />
assessments<br />
of performance, see performance appraisals<br />
of present work/people requirements, 80,<br />
184–189<br />
with work portfolios, 222–224<br />
assessment centers, 221–222<br />
Austin, Michael J., on reason for transition,<br />
343–344<br />
automated talent inventory systems, 289<br />
average performers, 84<br />
avoidable turnover, 228<br />
awareness building, 126<br />
awareness stage, 119, 121<br />
balance, work/family, 323<br />
Bardach, Eugene, on work of dirty-minded implementors,<br />
348<br />
Barr, Michael, 354–360<br />
Baumrin, Sara, on dismissals, 343<br />
behavioral event interviewing, 90<br />
behaviorally anchored rating scales (BARS),<br />
197–198<br />
behavior level of training, 293–294<br />
Bell, Charlie, 14, 15<br />
Ben & Jerry’s, 70<br />
best practices, 31–32, 113–118<br />
best-practice SP&M programs, xxiii<br />
blackbox, 119<br />
bonus plans, 122–123<br />
Boston Consulting Group, 213<br />
bottom-line value, 105–107<br />
bottom-up approach, 30, 32<br />
Brache, A., 258<br />
Brown, Ron, 16, 67<br />
‘‘bureaucratic kinship system,’’ 19<br />
business case for SP&M, 333–334<br />
Business Decisions, Inc., 273<br />
business process reengineering, 258<br />
Calhoun, David, 12<br />
Camp, Robert C., on benchmarking, 113<br />
Cantalupo, Jim, 14, 15<br />
career development, 323–327<br />
career maps, 36<br />
career path meetings, 75<br />
career planning meetings, 75<br />
Carlisle, Kenneth E., on job/task analysis, 185<br />
catastrophe, 16<br />
391
392 I NDEX<br />
Champy, James, on business process reengineering,<br />
258<br />
change agents, 119–120<br />
Chief Executive magazine, 32<br />
childbirth, 151<br />
children, 154<br />
China, 49, 318, 319<br />
citizenship, 152<br />
Civil Rights Act (1964), 149, 151, 154<br />
civil service systems, 51, 321–322<br />
clarification of high-level replacement needs, 57<br />
Click XG Workforce, 273<br />
‘‘cloning the incumbent,’’ 258<br />
closed communication strategy, 159<br />
closed SP&M, 34<br />
Coca-Cola, 15, 114<br />
codes of conduct, 49<br />
Cohen Machinery Co., 360<br />
collective bargaining, 148<br />
collectivistic cultures, 49<br />
Collins, Jim, on good-to-great, 354, 359<br />
combination approach, 32–33<br />
committees, 162<br />
communication, 157–160, 361<br />
communication strategy, 147, 154<br />
company-specific competency models, 287<br />
The Competence Expert, 286<br />
competency assessment, 82<br />
Competency Coach for Windows, 286<br />
competency development strategies, 86–89<br />
competitive job searches, 51<br />
competitive skill inventories of high-potential<br />
workers outside organization, 38–39<br />
complex methods, 272–273<br />
conditions, learning, 238<br />
conference calls, 280, 283<br />
Congressional Accountability Act (1995), 154<br />
consultants, 240, 242, 312, 361–362<br />
consulting, 39<br />
content (term), 135<br />
continuous SP&M, 33, 70<br />
contractors, 148–151, 153<br />
Contract Work Hours Safety Standards Act (1962),<br />
149<br />
Cooper, Kenneth Carlton, 286<br />
coordinative role, 142<br />
coordinators, 161, 162<br />
Corning, 233<br />
corporate culture-specific development strategy,<br />
87–89<br />
corporate governance crisis, xix<br />
corporate headquarters, alternative, xvii<br />
corporate politics, 69, 72–73<br />
cost-benefit analysis, 107<br />
Council of Institutional Investors, 122<br />
counseling managers, 172–174<br />
cover letters, 101<br />
creativity, 17<br />
crises, 96, 104<br />
criteria, learning, 238<br />
critical incident analysis, 215<br />
criticality, 265–266<br />
critical questioning, 58<br />
critical turnover, 24, 228, 314<br />
cross-gender mentoring, 255<br />
crown prince phenomenon, 157, 322<br />
cultural differences, 47–50<br />
culture, corporate, see corporate culture<br />
customer satisfaction, 294<br />
DACUM method, see Developing A Curriculum<br />
method<br />
Daft, Douglas, 15<br />
Davis-Bacon Act (1931), 148<br />
deadwood, 214–215<br />
death, 14–15, 16<br />
dedicated responsibility, 57<br />
Deegan, Arthur X., II, on selection of key position,<br />
235<br />
degree programs, 245, 247<br />
delegating down, 313<br />
delegating up, 313<br />
Deloitte, 313<br />
Deming, W. Edwards, on employee performance<br />
appraisals, 193<br />
demographic changes, xviii, xx–xxi, 45, 318<br />
demotion (moving people down in organization),<br />
36<br />
department managers, 336<br />
departures, 314<br />
derailment competency studies, 84<br />
Descriptions Now!, 284<br />
Developing A Curriculum (DACUM) method,<br />
187–189<br />
developmental dilemma, 255<br />
developmental gaps, 80, 287–288<br />
development in current position, 37<br />
development meetings, 75, 231<br />
dimensions/activity rating approach, 197<br />
Dinkins, David, 350<br />
direct expenses, 107<br />
direct training, 171<br />
‘‘dirty-minded implementors,’’ 348<br />
disabilities, 150, 153<br />
disasters, xvii<br />
discretion, amount of individual, 34–35<br />
discrimination, 72, 149, 150, 152, 153<br />
Disney, 122<br />
dissatisfaction sources, 314<br />
dissemination, degree of, 34<br />
diversity, 19, 27–28, 36<br />
divisional meetings, 75<br />
document distribution, 279<br />
document storage and retrieval, 279<br />
Dole Food Company Inc., 337–341<br />
domain, 119<br />
domino effect, 312<br />
Dormant, Diane, 118, 119<br />
dossiers, 223<br />
double loop learning, 13<br />
Dow Chemical Company, 70–72, 233<br />
downsizing, 18–19, 29, 36, 45, 46<br />
Drotter, Stephen J., on lack of mission clarification,<br />
130<br />
Drucker, Peter, on tomorrow’s management, xxii<br />
dual career ladders, 37<br />
early tracking systems, 314<br />
Economic Dislocation and Worker Adjustment Assistance<br />
Act (1988), 153<br />
education, employee, 24–25<br />
education meetings, 75<br />
effective placements, 294<br />
Eisner, Michael, 122
Index<br />
393<br />
elderly people, 318<br />
e-learning, 290<br />
Eli Lilly and Company, 89<br />
elimination of work, 313<br />
e-mail surveys, 101<br />
employee buyouts, 36<br />
employee development programs, xxiii, 25<br />
employee hoarding, 234<br />
employee performance appraisal meetings, 75<br />
Employee Polygraph Protection Act (1988), 153<br />
Employee Retirement Income Security Act (ERISA)<br />
(1974), 151<br />
employee rights, 148<br />
Employers Reinsurance, 12<br />
Employment and Training Administration, 152<br />
employment contract, 46<br />
employment laws, 145, 147–154<br />
Employment Standards Administration, 153<br />
empowered individual potential assessments,<br />
220–221<br />
enthusiasm, 291<br />
entry (moving people into organization), 35–36<br />
environmental scanning, 204, 205<br />
Equal Employment Opportunity Commission<br />
(EEOC), 145, 147, 149–151, 153, 154<br />
Equal Pay Act (1963), 149<br />
Ernest, Elaine H., 354–360<br />
essential job function, 185<br />
Estate Archetypes Inc., 363<br />
ethics, 328<br />
ethics programs, 49<br />
Europe, 50<br />
evaluation<br />
of learning and outcomes, 242–244<br />
of SP&M, 81<br />
evaluation of SP&M, 292–307<br />
anecdotal, 296, 300<br />
definition of, 292<br />
guidelines for, 297–298<br />
hierarchy of, 293–296<br />
interest in, 292–293<br />
key questions governing, 293<br />
periodic, 301<br />
programmatic, 301–307<br />
technological support for, 290<br />
worksheet for identifying appropriate, 299<br />
evidence of accomplishment, 240<br />
executive coaching, 253<br />
Executive Order 11246 (1965), 149<br />
Executrack, 273<br />
exemplary performers, 84–87, 200–201, 213–215<br />
exit interview systems, 314<br />
expenses, 107<br />
external benchmarking, 56<br />
external talent, 70<br />
external talent pools, 68<br />
‘‘Facilitate interactive debate’’ approach, 135, 138<br />
facilitators’ roles, 128, 129<br />
Fair Labor Standards Act (FLSA) (1947), 148<br />
Family and Medical Leave Act (FMLA) (1991), 154<br />
‘‘family heritage,’’ 50<br />
family psychology, 53<br />
Family Ties program, 350, 351<br />
family/work balance, 323<br />
farm labor, 152<br />
Farquhar, Katherine, 343, 344<br />
Fayol’s fourteen points of management, 10<br />
Federal Aviation Administration, 338<br />
federal contractors, 148–151, 153<br />
Federal Mediation and Conciliation Service, 151<br />
Federal Senior Executive Service, 343<br />
feedback, 191–192, 252<br />
The Financial Executive, 54<br />
firings, 36<br />
first generation of SP&M, 59, 66<br />
Fitz-enz, Jac, on making case for SP&M, 105<br />
flexible staffing, 266<br />
flexible strategies, 309, 312–317<br />
FMLA (Family and Medical Leave Act) (1991), 154<br />
focused attention, 56<br />
Ford, 52<br />
formal mentoring, 58, 254<br />
Formtool, 290<br />
Fortune magazine, 89<br />
40-hour workweek, 149<br />
fourth generation of SP&M, 68, 147<br />
France, 318, 320<br />
Fredrickson, James W., on dismissals, 343<br />
free-form appraisals, 195<br />
frequently asked questions (FAQs), 331–336<br />
fringe benefits, 150<br />
fully successful performers, 85<br />
Fulmer, Robert M., on best practices, 31<br />
functional meetings, 75<br />
future competency models, 208–210<br />
future competency studies, 84<br />
future individual potential assessment, 80<br />
future key positions, 203–212<br />
future leaders, 31<br />
future of SP&M, 308–330<br />
acquisitions in, 329<br />
career development integration in, 323–327<br />
ethics/values in, 328<br />
flexible strategies in, 309, 312–317<br />
global impact on, 318–321<br />
in government, academia, nonprofits, 321–322<br />
leveraging talent in, 328–329<br />
manager’s role in, 323, 328<br />
openness in, 322<br />
retention policies/procedures integrated in, 314<br />
risk management in, 329<br />
selection decisions integrated in, 328<br />
technological innovations in, 321<br />
work/family balance in, 323<br />
worksheets to structure thinking about, 310–<br />
311, 315–317<br />
future-oriented competency modeling, 286<br />
future-oriented job and task analysis, 207–209<br />
future-oriented rapid results assessment, 210–212<br />
future potential, 57, 189<br />
future rapid results assessment, 209–212<br />
future scenarios, 204, 207, 208<br />
futuring approach, 22, 24<br />
Gallant, Jefferey, on family businesses, 362<br />
gambler’s fallacy, 179<br />
gender, 149<br />
General Electric (GE), 11–13, 15, 114, 233<br />
generalized SP&M, 34<br />
General Motors, 114<br />
generals, 345<br />
generic competency development strategy, 86–87<br />
Genesis award, 71
394 I NDEX<br />
Gent, Sir Christopher, 15<br />
Gibney, Jim, 360–361<br />
Giuliani, Rudolph, 350<br />
global assessment, 215, 216<br />
Global Business Network, 286<br />
global impact, 318–321<br />
global issues, 48–50<br />
global rating approach, 196<br />
global recruitment, 313<br />
Goizueta, Roberto, 15<br />
Golden, Karen A., on lack of integration, 112<br />
Goodkind, Labaton, Rudoff & Sucharow, 362<br />
Gordon, Gil E., on succession, 343<br />
governance crisis, xix<br />
governors, 345<br />
Greenberg, Jack, 14<br />
Greenblatt, Milton, on anticipatory stage of succession,<br />
343<br />
greenmail, 322<br />
Greensboro Regional Realtors Association (GRRA),<br />
354–360<br />
Gridley, John D., on growing importance of HRP,<br />
24<br />
group process, 232<br />
groupware, 280, 286<br />
‘‘guerrilla warfare,’’ 170<br />
Haire, M., on types of job movements, 35<br />
halo effect, 72, 215<br />
Hambrick, Donald C., on dismissals, 343<br />
Hammer, Michael, on business process reengineering,<br />
258<br />
hands-on trial stage, 120, 121<br />
hardwiring, 349–350<br />
headcount, 30<br />
health standards, 150<br />
Herzlinger, Regina, on intergenerational equity,<br />
345<br />
Hewitt, 338, 339, 340<br />
Hickey, Will, on negligence of systemic succession<br />
planning, 49<br />
high performers (HiPers), xviii<br />
high-tech methods, 272<br />
Hill, Anita, 255<br />
HiPers (high performers), xviii<br />
HiPos, see high potentials<br />
hiring from outside, 309, 312<br />
‘‘hiring off the street,’’ 35–36<br />
historical studies, 126<br />
Hogan Assessment Systems, 201<br />
‘‘holding themselves for ransom,’’ 158<br />
hole (key position), 181, 228, 229<br />
homosocial reproduction, 19, 182<br />
Honeywell, 12<br />
horizontal advancement, 199<br />
horizontal loading, 37<br />
horn effect, 72, 215<br />
‘‘horror stories,’’ 96<br />
HR information systems (HRIS), 86, 289<br />
HRMS software, 340<br />
HRSoft, 273<br />
HR systems, xix<br />
human capital management (HCM), xviii, 17–18,<br />
86<br />
Human Capital Management (software), 273<br />
human capital management initiatives, 51<br />
Human Resource Management, 343<br />
human resource management (HRM), xxiii<br />
human resource planning (HRP), 24<br />
Human Resource Planning Society, 114<br />
Human Resources Conference, 69<br />
human resource strategy, 111–112<br />
Hunt, James, on coaching, 252<br />
IBM, 114, 209<br />
IDPs, see individual development plans<br />
Immelt, Jeffrey R., 11–13<br />
Immigration and Naturalization Service, 152<br />
Immigration Reform and Control Act (IRCA)<br />
(1986), 152<br />
incentives, 314<br />
incident reports, 296, 300<br />
increased responsibility, 36<br />
indirect expenses, 107<br />
individual development planning, 227<br />
individualists, 49<br />
individual learning plan, 192<br />
individual performance appraisals, see performance<br />
appraisals<br />
individuals, SP&M role of, 336<br />
informal approach, 98–99<br />
informal mentoring, 254<br />
informal surveys, 99–101<br />
infrastructure, 143<br />
in-house training, 166–169, 245, 248<br />
innovation, sustained, 341–352<br />
inplacement, 28, 37<br />
insourcing, 312<br />
institutional memory, xviii, 13, 17<br />
integrated retention policies/procedures, 314<br />
intellectual capital, 25, 46–47<br />
interactive and multimedia distribution and delivery,<br />
280<br />
‘‘interactive debate,’’ 135, 138<br />
interactive methods, 272–273<br />
intergenerational equity, 345<br />
internal development, 242, 244–251<br />
internal promotion policy formulation, 232–235<br />
internal promotions, appropriateness of, 233–234<br />
internal successor development, 227–256<br />
with action learning, 255–256<br />
with coaching, 252<br />
with executive coaching, 253<br />
how-based strategies for, 251<br />
with IDPs, 235–244<br />
with leadership development programs, 251<br />
with mentoring, 253–255<br />
policy formulation for, 232–235<br />
strategies for, 242, 244–251<br />
testing bench strength for, 227–233<br />
what-based strategies for, 244, 250<br />
when-based strategies for, 250<br />
where-based strategies for, 250–251<br />
who-based strategies for, 244<br />
why-based strategies for, 251<br />
internal talent pools, 68<br />
International Society for Performance Improvement<br />
(ISPI), 20<br />
Ivester, Douglas, 15<br />
Jacobs, Carl, 362–363<br />
J.G. Industries, Inc., 360, 361<br />
job analysis, 184, 207–209<br />
job content coaches, 253
Index<br />
395<br />
job description, 184, 283–284<br />
job forecasting, 285–286<br />
job movements, 35–37<br />
job performance, 57<br />
job posting, 36, 234–235<br />
job rotations, 37–39, 74, 245, 250<br />
jobs, positions vs., 184<br />
job security, 151<br />
job sharing, 39<br />
job tenure, xxi<br />
Job Training Partnership Act (1982), 152<br />
joint labor-management activities, 151<br />
Kaihla, Paul, on psychological assessments, 201<br />
Kaiser, Marc, 338, 339<br />
Kanter, Rosabeth Moss, on homosocial reproduction,<br />
19, 182<br />
Katzenbach, Jon R., 347<br />
Kelleher, Herb, 89<br />
Kern, Larry, 339, 341<br />
Kets de Vries, Manfred F. R., on reluctance to deal<br />
with succession planning, 345<br />
key people, loss of, 125–126<br />
key position selection, 235<br />
kickoff meetings, 75, 162–163<br />
Kilts, James, 15<br />
Kirkpatrick, Donald, 293<br />
knowledge management, 46–47<br />
Korn, Lester, on human resource asset base, 18<br />
Korn/Ferry International, 18, 122<br />
Labat, Lisa, on business needs, 339<br />
Labor-Management Cooperation Act (1978), 151<br />
Labor-Management Reporting and Disclosure Act<br />
(Landrum-Griffin Act) (1959), 148–149<br />
labor relations, 151<br />
lateral transfer, 36–37<br />
laws, employment, 145, 147–154<br />
layoffs, 36, 153<br />
leader-driven individual potential assessments,<br />
217, 219<br />
leadership continuity, 35–39<br />
leadership development programs, 251<br />
learning contract, 235<br />
learning evaluation, 242–244<br />
learning level of training, 293<br />
learning needs diagnosis, 235, 238<br />
learning objectives, 238, 239<br />
learning resources, 238–241<br />
learning through action, 255–256<br />
Legal Services Corporations, 343<br />
Leibman, Michael, on dynamic environment, 41<br />
leveraging talent, 328–329<br />
lie detector tests, 153<br />
life insurance, 363<br />
‘‘like me’’ bias, 73<br />
listening, 252<br />
‘‘loaned executives,’’ 313<br />
localization strategy, 320<br />
long-term competencies, 58<br />
long-term development, 70<br />
loyalty, 45–46<br />
Mager, Robert F., on learning objectives, 238<br />
Mahler, Walter R., on lack of mission clarification,<br />
130<br />
management by objectives (MBO), 198<br />
management development and compensation<br />
committee (MDCC), 11, 12<br />
management development (MD) programs, xxiii,<br />
xxiv<br />
management track, 37<br />
mandated SP&M, 35<br />
Manzini, Andrew O., on growing importance of<br />
HRP, 24<br />
market-driven approach, 22<br />
Marshall, Thurgood, on being black in America, 27<br />
McClelland, David, on standardized testing, 82<br />
McDonald’s, 14–15<br />
McKenna, Andrew, 14<br />
McLagan’s Flexible Approach, 187<br />
McNerney, James, 11–13<br />
measurement, 71, 105–107<br />
mental tryout stage, 120, 121<br />
mentoring, 58, 245, 249, 253–255, 328, 329,<br />
359–360<br />
mentors, 77, 254<br />
middle management, 18–19, 67–68<br />
Middleton, Robert, on family succession, 361<br />
minimum wage, 148–150<br />
mining industry, 150, 151<br />
modeling behaviors, 252<br />
monarchs, 345<br />
money resources, 238<br />
morale, 28, 36<br />
motivation, 221<br />
Motorola, 38, 114<br />
multiculturalism, 19<br />
multinational corporations (MNCs), 48<br />
musical chairs effect, 312<br />
Myers Briggs Type Indicator (MBTI), 201<br />
Nardelli, Robert, 11–13<br />
National Academy of Public Administration (NAPA),<br />
342–343<br />
National Labor Relations Act (1947), 148<br />
national origin, 149, 152<br />
necessity question, 258–268<br />
need for speed, 42, 44<br />
needs-driven SP&M, 56, 70<br />
Neo, 201<br />
Netmeeting, 280, 283<br />
netphone, 280<br />
network charting, 182–183<br />
New York City Department of Juvenile Justice, 342,<br />
347–351<br />
nondirective roles, 128, 129<br />
noninteractive methods, 272, 273<br />
objectives, strategic, 84<br />
Occupational Safety and Health Act (OSHA) (1970),<br />
150<br />
Occupational Safety and Health Administration,<br />
150<br />
off-the-job degree programs, 245, 247<br />
off-the-job public seminars, 245, 247, 248<br />
older workers, 318–319<br />
Older Workers Benefit Protection Act (1990), 154<br />
ONet, 284<br />
online methods, 272, 321<br />
on-site degree programs, 245, 247<br />
on-the-job training, 245, 248, 249<br />
open communication strategy, 159<br />
openness, 322
396 I NDEX<br />
open SP&M, 34<br />
opportunities, seizing, 104–106<br />
Optum, Inc., 224<br />
organizational analysis, 204, 206<br />
Organizational Dynamics, 89<br />
organizational effectiveness, 151<br />
organizational meetings, 75<br />
organizational outcomes, 294<br />
organizational redesign, 37–38<br />
organizational requirements, 108–110<br />
organizational results, 296<br />
organizational strategy, 111<br />
organizational structure, 204<br />
organization chart, 181<br />
OrgPlus, 290<br />
original data collection for policy formulation, 279<br />
Orwell, George, on equality, 50<br />
outsourcing, 38, 265–266, 312<br />
overstaffing, 38<br />
overtime, 39, 148, 149<br />
paperwork, 74–75<br />
participant roles, 129<br />
participation, 56<br />
participative assessment, 219–220<br />
part-time employment, 39<br />
passive roles, 128, 129<br />
patience, 291<br />
Pension and Welfare Benefits Administration, 151,<br />
152<br />
pension plans, 151, 152<br />
PeopleClik, 273<br />
People Manager, 288<br />
‘‘people problems,’’ 173–174<br />
people resources, 238<br />
PeopleTrak, 288<br />
performance, future potential vs. present, 189<br />
performance contract, 235<br />
performance management, 193, 194<br />
Performance Now!, 285<br />
periodic evaluation, 301<br />
periodic review meetings, 163<br />
periodic SP&M, 33<br />
personality assessments, 201<br />
pigeonholing, 72<br />
Pilat, 273<br />
Pilat NAI, 338, 340<br />
plan for improvement, 192<br />
planned job rotation programs, 245, 250<br />
planned mentoring programs, 245, 249<br />
planned on-the-job training, 245, 249<br />
planning, training and, 164–169<br />
plant closures, 153<br />
policy writing, 136–138<br />
politics, corporate, 69, 72–73<br />
population, 318–319<br />
Porter, Gordon, 363<br />
portfolios, work, 222–224<br />
position analysis, 185, 187<br />
potential assessment meetings, 75<br />
potential assessments, individual, see individual<br />
potential assessments<br />
Pregnancy Discrimination Act (PDA) (1978), 151<br />
present competency studies, 84<br />
present job performance, 57<br />
present work requirements, see work requirements<br />
primogeniture, 52<br />
‘‘Prince Charles syndrome,’’ 15<br />
priority setting, 143–147<br />
Private Industry Councils, 152<br />
procedure writing, 136–138, 280, 283<br />
process (term), 135<br />
process coaches, 253<br />
process consultation, 253<br />
process improvement, 258, 265<br />
process redesign, 38<br />
professional positions, 141<br />
profitability, xxii<br />
program coordinators, 161<br />
programmatic evaluation, 301–307<br />
program progress, 294<br />
progress in place (development in current position),<br />
37<br />
promotion (moving people up in organization), 36<br />
promotion from within, 227, 232–234<br />
proposal meetings, 162<br />
protégés, 254<br />
psychological assessments, 201<br />
public sector case studies, 341–352<br />
purpose statements, see mission statements<br />
Pygmalion effect, 72, 193<br />
question marks (term), 214<br />
quick-fix attitudes, 73<br />
race, 149<br />
Rainey, Hal G., on transition management, 343<br />
Ramanujam, Vasudevan, on lack of integration, 112<br />
rapid results assessment, 189, 209–212<br />
reaction level of training, 293<br />
readiness to assume duties, 233–234<br />
readjustment, 153<br />
reallocating duties within organization, 265<br />
real-time education, 74<br />
recency bias, 72, 215<br />
recognition of positive performance, 252<br />
‘‘Recommend and listen’’ approach, 132–135, 138<br />
‘‘reduction in cycle time,’’ 42<br />
Rehabilitation Act (1973), 150<br />
reinventing retirement, 266, 269, 270<br />
religion, 149<br />
reluctance to ‘‘deal’’ with succession, 344–345<br />
reorganization, 312<br />
replacement charts, 36, 228–230, 290<br />
replacement needs identification, 24–25<br />
replacements, necessity question about, 258–268<br />
researching secondary information, 277–279<br />
resistance to SP&M, 97<br />
resources, learning, 238–241<br />
responsibility, increased, 36<br />
results measurement, 105<br />
retention policies/procedures, 314<br />
retention programs, 45<br />
retention strategies, 25–27, 49<br />
retiree base, 39, 266, 269, 270, 314<br />
retirement age, 45<br />
retirement benefits, 151<br />
retirement dates, 20, 104, 125<br />
retirement eligibility, 125<br />
retraining, 153<br />
retreats, 160–162, 347–348<br />
return-on-investment (ROI), 334<br />
Revans, Reg, 255<br />
rewards, 46, 328
Index<br />
397<br />
Rhodes, Frank, 12, 13<br />
rifle approach, 24<br />
‘‘right to sue’’ letters, 147<br />
risk analysis, 20, 125–126<br />
risk management, 16, 329<br />
role clarification, 142<br />
role incumbents (role senders), 127, 128<br />
role receivers, 127, 128<br />
roles<br />
of CEOs/managers, 142<br />
clarifying program, 126–130<br />
of HR department, 142–143<br />
of individuals, 143<br />
of stakeholders, 143<br />
understanding, 126–128<br />
role senders (role incumbents), 127, 128<br />
role theory, 127–130<br />
roll-out approach, 59, 147, 154<br />
Rosen, Ned, on succession, 343<br />
Rothwell, William, on best practices, 32<br />
Rummler, G., 258<br />
safety standards, 150<br />
Sarbanes-Oxley Act (2002), xviii, 49, 122<br />
Sarin, Arun, 15<br />
scandals, xvii–xviii, 47<br />
scenario analysis, 207<br />
scenario planning, 84, 286<br />
Schall, Ellen, 341–354<br />
Schein, Edgar, 253<br />
scope, 33–34<br />
seasonal agricultural workers, 152<br />
secondary information, 277–279<br />
second generation of SP&M, 66, 67<br />
secrecy, 34<br />
security, 329<br />
selection decisions, 328<br />
self-concern stage, 119, 121<br />
seller’s market for skills, 44–45<br />
seminars, 245, 247, 248<br />
seniority, xxi, 234<br />
Senior Leaders Program, 313<br />
September 11, 2001, terrorist attacks, xvii, 16, 329<br />
Service Contract Act (1965), 149–150<br />
seven-pointed star model, 78, 79<br />
sex, 149<br />
shadowing, 182–183<br />
Shiloh Nurseries, 362–363<br />
Silverman, Marc, on family businesses, 361–362<br />
simple methods, 272, 273<br />
site visits, 113–114<br />
skills, seller’s market for, 44–45<br />
Smith, Douglas K., 347<br />
Society for Human Resources Management<br />
(SHRM), 20, 114<br />
Softscape, 273<br />
soft skills technologies, 320–321<br />
Southwest Airlines, 89<br />
specialized SP&M, 33–34<br />
spirituality, 323<br />
sponsors, 58, 254<br />
spouses, 53<br />
stars, 213, 214<br />
Stebbins, Michael, 362–363<br />
stereotyping, 72<br />
strategic alliances, 313<br />
strategic goals and objectives, 84<br />
Strategic Initiatives Inc., 361<br />
strategic planning, xxiii, 20–24<br />
strategic thinking, xxiii<br />
success factor analysis, 215–218<br />
Success Factors (company), 273<br />
Succession (software), 273<br />
succession management, 10<br />
succession planning and management (SP&M), xx,<br />
7–40<br />
at all levels, xxii, 57<br />
amount of individual discretion in, 34–35<br />
and appreciative inquiry, 77<br />
assessing current state of, 95–104<br />
assessment of need for, 1–4<br />
assessment questionnaire for, 64–66<br />
benefits of, xxii, 335<br />
best practices/approaches to, 30–35<br />
business case for, 18–20<br />
characteristics of effective, 56–63<br />
defining, 10, 13<br />
demonstrating need for, 101, 104–107<br />
deploying, 31<br />
direction of, 30, 32–33<br />
dissemination of, 34<br />
GE example of, 11–13<br />
and HCM, 17–18<br />
importance of, 98<br />
interest in, 332<br />
and leadership continuity, 35–39<br />
leadership focus of, xxi<br />
life cycle of, 59, 66–69<br />
McDonald’s example of, 14–15<br />
ministudies of, 7–9<br />
need for, xxii–xxiii<br />
performance appraisals linked to, 194–199<br />
planning component of, 33<br />
problems affecting, 69, 72–76, 334–335<br />
reasons for, 20–30<br />
replacement planning vs., 16<br />
resistance to, 97<br />
scope of, 33–34<br />
talent management vs., 16–17<br />
timing of, 33<br />
workforce planning vs., 16<br />
and WSTC, 76<br />
Succession Pulse, 273<br />
successors, 57<br />
sudden death, 14–15, 16<br />
supervisory positions, 139<br />
supremacy clause (of U.S. Constitution), 145<br />
‘‘survivor’s syndrome,’’ 28<br />
‘‘sustained innovation,’’ 341–342<br />
systematic planning, 33<br />
systematic SP&M, 57<br />
Taft-Hartley Act (1947), 148<br />
talent, 13, 70<br />
talent development, xviii<br />
talent inventories, 288–289<br />
talent management, xviii, 16–17<br />
Talent Management (software), 273<br />
talent-pool approach, 51<br />
target group identification, 138–142<br />
task analysis, 184, 207–209<br />
task inventory, 184<br />
team-based management, 74
398 I NDEX<br />
technical positions, 37, 141<br />
technical succession planning, xix<br />
technological innovations, 321<br />
technological support, 272–291<br />
applications for, 276<br />
brainstorming worksheet for, 281–282<br />
closing developmental gaps with, 287–288<br />
competency-modeling with, 86<br />
evaluating SP&M program with, 290<br />
formulating policy/procedures/action plans with,<br />
280, 283<br />
future work requirements determination with,<br />
285–286<br />
hierarchy of applications for, 276–282<br />
individual potential assessment with, 287<br />
maintaining talent inventories with, 288–289<br />
for paperwork, 74<br />
performance appraisal with, 284–285<br />
present work requirements assessment with,<br />
283–284<br />
rating form for, 274–276<br />
specialized competencies required for, 290–291<br />
vendors of, 273<br />
temping, 39<br />
temporary replacements, 312<br />
temporary trading of personnel, 38<br />
terminations, 29, 30, 36, 153, see also moving people<br />
out of organization<br />
terrorism, 122<br />
Teslik, Sarah, on Disney SP&M, 122<br />
third generation of SP&M, 67–68, 147<br />
third-party consultants, 162<br />
Thomas, Clarence, 255<br />
360-degree assessments, 77, 86, 287, see also fullcircle,<br />
multirater assessments<br />
time frame (for IDPs), 235<br />
time resources, 238, 240<br />
timing, 33<br />
Title VII of the Civil Rights Act (1964), 149, 151<br />
Tobias, Randall, 89<br />
‘‘Top 20 Companies for Leaders’’ study, 338<br />
top-down approach, 22, 30<br />
top performers, values clarification of, 90–91<br />
Total Quality Management (TQM), 113, 193<br />
trading personnel temporarily, 38, 313<br />
training, education, and developmental meetings,<br />
75<br />
training on SP&M, 164–171<br />
training support, 290<br />
trait rating approach, 196<br />
Trak-IT HR, 289<br />
transfers, 312<br />
‘‘transformational change,’’ 95<br />
triangulation, 183<br />
trust, 220<br />
turbulence, 346–347<br />
two-in-the-box arrangements, 38<br />
unavoidable turnover, 228<br />
Uniform Guidelines on Employee Selection Procedures,<br />
147<br />
union representation, 148<br />
unions, 148–149<br />
United Kingdom, 318, 319<br />
United States, 318<br />
unplanned job rotation programs, 245, 250<br />
unplanned mentoring programs, 245, 249<br />
unplanned on-the-job training, 245, 248<br />
unsystematic planning, 33<br />
uproar method, 180–181<br />
upward mobility, 36<br />
U.S. Agencies Credit Union, 363–365<br />
U.S. Constitution, 145<br />
U.S. Department of Health and Human Services,<br />
150<br />
U.S. Department of Justice, 152<br />
U.S. Department of Labor (DOL), 148–154, 185<br />
U.S. Masters tournament, 12<br />
U.S. Secretary of Commerce, 16, 67<br />
U.S. General Accounting Office, 17–18<br />
vacancy in key position, 180–181<br />
validation of evidence, 240<br />
values, 47, 87, 89–91, 328<br />
values clarification, 87, 89–91<br />
values statements, 89, 199<br />
verified SP&M, 35<br />
vertical advancement, 195, 199<br />
vertical loading, 37<br />
veterans, 151<br />
videoconferencing, 280, 283<br />
Vietnam Era Veterans’ Readjustment Assistance Act<br />
(VEVRAA) (1974), 151<br />
visibility, 73<br />
visual aids, 126<br />
Vizzini, Kelly, on work samples, 224<br />
Vodafone, 15<br />
voluntary suspension programs, 28–29<br />
voluntary turnover, 314<br />
Wage and Hour Division (DOL), 148–150, 152–154<br />
Wagner Act (1947), 148<br />
Warner Electric, 360<br />
Warren Pike Associates, 360–362<br />
Wechsler, Barton, on transition management, 343<br />
Weintraub, Joseph, on coaching, 252<br />
what-based strategies, 244, 250<br />
‘‘what if’’ scenarios, 126<br />
Whistleblower Protection Statutes (1989), 153<br />
who-based strategies, 244<br />
whole systems transformational change (WSTC),<br />
76<br />
wills, 53<br />
W.M. Steele Co., 360<br />
Worker Adjustment and Retraining Notification Act<br />
(WARN) (1988), 153<br />
work/family balance, 323<br />
Workforce Performance Management, 273<br />
workforce planning, xviii, 16, 51<br />
workforce reductions, 29<br />
workhorses, 213–214<br />
workload measurement, 105<br />
workplace learning and performance (WLP), xxiii<br />
work portfolios, 222–224<br />
work processes, 204<br />
work requirements meetings, 75<br />
work samples, 223<br />
written policy and procedures, 136–138<br />
written surveys, 101–104<br />
Xerox, 114
ABOUT THE AUTHOR<br />
William J. Rothwell is Professor-in-Charge of Workforce Education and Development<br />
in the Department of Learning and Performance Systems in the College<br />
of Education on the University Park campus of The Pennsylvania State<br />
University. He leads a graduate emphasis in workplace learning and performance.<br />
He is also President of Rothwell & Associates, Inc. (see www.rothwellassociates.com),<br />
a full-service private consulting firm that specializes in all facets<br />
of succession planning and management and related HR issues.<br />
Rothwell completed a B.A. in English at Illinois State University, an M.A.<br />
(and all courses for the doctorate) in English at the University of Illinois at<br />
Urbana-Champaign, an M.B.A. at the University of Illinois at Springfield, and a<br />
Ph.D. degree with a specialization in employee training at the University of<br />
Illinois at Urbana-Champaign. He holds life accreditation as a Senior Professional<br />
of Human Resources (SPHR) and was the first U.S. citizen awarded<br />
trainer certification (CTDP) by the Canadian Society for Training and Development<br />
(CSTD).<br />
Before entering academe in 1993, Rothwell had twenty years of experience<br />
as an HR practitioner, serving first as Training Director for the Illinois Office of<br />
Auditor General and later as Assistant Vice President and Management Development<br />
Director for The Franklin Life Insurance Company, at that time a<br />
wholly owned subsidiary of a Fortune 50 multinational company.<br />
Best-known for his extensive and high-profile work in succession management,<br />
Rothwell is a frequent speaker or keynoter at conferences and seminars<br />
around the world. He has authored, coauthored, edited, or coedited numerous<br />
books, book chapters, and articles. Among his most recent publications<br />
are Beyond Training and Development, 2nd ed. (AMACOM, 2005), Practicing<br />
Organization Development, 2nd ed. (Pfeiffer, 2005), the current ASTD competency<br />
study to define the workplace learning and performance field entitled<br />
Mapping the Future (with P. Bernthal and others, ASTD, 2004), Competency-<br />
Based Human Resource Management (with D. Dubois, Davies-Black, 2004),<br />
Linking Training to Performance (with P. Gerity and E. Gaertner, American<br />
Association of Community Colleges, 2004), The Strategic Development of Talent<br />
(with H. Kazanas, HRD Press, 2004), Mastering the Instructional Design<br />
Process, 3rd ed. (with H. Kazanas, Pfefifer, 2004), Improving On-The-Job Train-<br />
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400 A BOUT THE A UTHOR<br />
ing, 2nd ed. (with H. Kazanas, Pfeiffer, 2004), What CEOs Expect from Corporate<br />
Training: Building Workplace Learning and Performance Initiatives That<br />
Advance Organizational Goals (with J. Lindholm and W. Wallick, AMACOM,<br />
2003), Planning and Managing Human Resources,2nded.(withH.C.Kazanas,<br />
HRD Press, 2003), Creating Sales Training and Development Programs: A<br />
Competency-Based Approach to Building Sales Ability (with W. Donahue and<br />
J. Park, Greenwood Press, 2002), The Workplace Learner: How to Align Training<br />
Initiatives with Individual Learning Competencies (AMACOM, 2002), and<br />
Building Effective Technical Training: How to Develop Hard Skills Within Organizations<br />
(with J. Benkowski, Pfeiffer, 2002).<br />
Rothwell is the U.S. editor of the International Journal of Training and<br />
Development (Blackwell’s), an academic journal on which he works with editorial<br />
counterparts in Europe and Asia. He is also a book series coeditor, with<br />
Roland Sullivan and Kris Quade, of the Wiley/Jossey-Bass/Pfeiffer book series<br />
Practicing Organization Change and Development; a book series coeditor,<br />
with Rita Richey and Tim Spannaus, of the Wiley/Jossey-Bass/Pfeiffer book series<br />
Using Technology in Training and Learning; and a book series coeditor,<br />
with Victoria Marsick and Andrea Ellinger, of the AMACOM book series Adult<br />
Learning Theory.